Measuring discoverIE Group plc's (LSE:DSCV) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess DSCV's recent performance announced on 31 March 2019 and weigh these figures against its long-term trend and industry movements.
How Well Did DSCV Perform?
DSCV's trailing twelve-month earnings (from 31 March 2019) of UK£15m has jumped 38% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 32%, indicating the rate at which DSCV is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only attributable to industry tailwinds, or if discoverIE Group has experienced some company-specific growth.
In terms of returns from investment, discoverIE Group has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 5.5% is below the GB Electronic industry of 7.3%, indicating discoverIE Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for discoverIE Group’s debt level, has increased over the past 3 years from 7.4% to 10%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While discoverIE Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research discoverIE Group to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for DSCV’s future growth? Take a look at our free research report of analyst consensus for DSCV’s outlook.
- Financial Health: Are DSCV’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 firstname.lastname@example.org. 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.