Measuring Interface Inc’s (NASDAQ:TILE) track record of past performance is a valuable exercise for investors. It allows 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 TILE’s recent performance announced on 01 July 2018 and compare these figures to its historical trend and industry movements.
Were TILE’s earnings stronger than its past performances and the industry?
TILE’s trailing twelve-month earnings (from 01 July 2018) of US$59m has jumped 19% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.1%, indicating the rate at which TILE is growing has accelerated. What’s enabled this growth? Well, let’s take a look at whether it is merely due to industry tailwinds, or if Interface has seen some company-specific growth.
In terms of returns from investment, Interface has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 8.2% exceeds the US Commercial Services industry of 7.4%, indicating Interface has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Interface’s debt level, has increased over the past 3 years from 13% to 17%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 94% to 72% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Interface gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Interface to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TILE’s future growth? Take a look at our free research report of analyst consensus for TILE’s outlook.
- Financial Health: Are TILE’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 01 July 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.