Interested In Spectris plc (LON:SXS)? Here's What Its Recent Performance Looks Like
Assessing Spectris plc's (LSE:SXS) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess SXS's recent performance announced on 31 December 2019 and evaluate these figures to its longer term trend and industry movements.
See our latest analysis for Spectris
Did SXS beat its long-term earnings growth trend and its industry?
SXS's trailing twelve-month earnings (from 31 December 2019) of UK£234m has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 13%, indicating the rate at which SXS is growing has accelerated. How has it been able to do this? Let's take a look at if it is solely owing to industry tailwinds, or if Spectris has seen some company-specific growth.
In terms of returns from investment, Spectris has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 12% exceeds the GB Electronic industry of 7.0%, indicating Spectris has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Spectris’s debt level, has declined over the past 3 years from 12% to 5.9%.
What does this mean?
Spectris's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Spectris 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 Spectris to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SXS’s future growth? Take a look at our free research report of analyst consensus for SXS’s outlook.
Financial Health: Are SXS’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 December 2019. This may not be consistent with full year annual report figures.
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.
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