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Measuring James River Group Holdings, Ltd.’s (NASDAQ:JRVR) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess JRVR’s recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.
How JRVR fared against its long-term earnings performance and its industry
JRVR’s trailing twelve-month earnings (from 31 December 2018) of US$64m has jumped 47% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 0.4%, indicating the rate at which JRVR is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is solely because of industry tailwinds, or if James River Group Holdings has experienced some company-specific growth.
In terms of returns from investment, James River Group Holdings has fallen short of achieving a 20% return on equity (ROE), recording 9.0% instead. However, its return on assets (ROA) of 2.4% exceeds the US Insurance industry of 2.2%, indicating James River Group Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for James River Group Holdings’s debt level, has increased over the past 3 years from 3.9% to 4.0%.
What does this mean?
Though James River Group Holdings’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as James River Group Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research James River Group Holdings to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for JRVR’s future growth? Take a look at our free research report of analyst consensus for JRVR’s outlook.
- Financial Health: Are JRVR’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 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 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.