Interested In Superior Group of Companies, Inc. (NASDAQ:SGC)? Here's How It Performed Recently
When Superior Group of Companies, Inc.'s (NasdaqGM:SGC) announced its latest earnings (30 September 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Superior Group of Companies's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not SGC actually performed well. Below is a quick commentary on how I see SGC has performed.
Check out our latest analysis for Superior Group of Companies
Was SGC's weak performance lately a part of a long-term decline?
SGC's trailing twelve-month earnings (from 30 September 2019) of US$14m has declined by -4.3% 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 6.5%, indicating the rate at which SGC is growing has slowed down. Why could this be happening? Let's examine what's transpiring with margins and if the entire industry is feeling the heat.
In terms of returns from investment, Superior Group of Companies has fallen short of achieving a 20% return on equity (ROE), recording 8.7% instead. Furthermore, its return on assets (ROA) of 5.3% is below the US Luxury industry of 5.9%, indicating Superior Group of Companies's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Superior Group of Companies’s debt level, has declined over the past 3 years from 13% to 8.3%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 31% to 76% over the past 5 years.
What does this mean?
Superior Group of Companies's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. I recommend you continue to research Superior Group of Companies to get a more holistic view of the stock by looking at:
Financial Health: Are SGC’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.
Valuation: What is SGC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether SGC is currently mispriced by the market.
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 30 September 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.
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. Thank you for reading.
