U.S. Markets open in 1 hr 40 mins

Interested In Concurrent Technologies Plc (LON:CNC)? Here's What Its Recent Performance Looks Like

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Analyzing Concurrent Technologies Plc's (LON:CNC) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess CNC's recent performance announced on 31 December 2018 and compare these figures to its long-term trend and industry movements.

Check out our latest analysis for Concurrent Technologies

Could CNC beat the long-term trend and outperform its industry?

CNC's trailing twelve-month earnings (from 31 December 2018) of UK£3.0m has increased by 7.7% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 17%, indicating the rate at which CNC is growing has slowed down. To understand what's happening, let's examine what's going on with margins and if the entire industry is facing the same headwind.

AIM:CNC Income Statement, June 17th 2019

In terms of returns from investment, Concurrent Technologies has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 12% exceeds the GB Tech industry of 6.0%, indicating Concurrent Technologies has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Concurrent Technologies’s debt level, has declined over the past 3 years from 20% to 15%.

What does this mean?

Though Concurrent Technologies's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Concurrent Technologies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Concurrent Technologies to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for CNC’s future growth? Take a look at our free research report of analyst consensus for CNC’s outlook.
  2. Financial Health: Are CNC’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.
  3. 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 December 2018. 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.