How ICF International, Inc.'s (NASDAQ:ICFI) Earnings Growth Stacks Up Against The Industry
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Examining how ICF International, Inc. (NASDAQ:ICFI) is performing as a company requires looking at more than just a years' earnings. Below, I will run you through a simple sense check to build perspective on how ICF International is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its professional services industry peers.
See our latest analysis for ICF International
Did ICFI's recent earnings growth beat the long-term trend and the industry?
ICFI's trailing twelve-month earnings (from 31 March 2019) of US$64m has declined by -1.3% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 14%, indicating the rate at which ICFI is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s transpiring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, ICF International has fallen short of achieving a 20% return on equity (ROE), recording 9.7% instead. Furthermore, its return on assets (ROA) of 5.4% is below the US Professional Services industry of 6.5%, indicating ICF International's are utilized less efficiently. However, its return on capital (ROC), which also accounts for ICF International’s debt level, has increased over the past 3 years from 8.3% to 9.1%.
What does this mean?
Though ICF International's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I suggest you continue to research ICF International to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ICFI’s future growth? Take a look at our free research report of analyst consensus for ICFI’s outlook.
Financial Health: Are ICFI’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
