John Bean Technologies Corporation (NYSE:JBT): Has Recent Earnings Growth Beaten Long-Term Trend?
Measuring John Bean Technologies Corporation's (NYSE:JBT) 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 JBT's recent performance announced on 31 December 2019 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for John Bean Technologies
How JBT fared against its long-term earnings performance and its industry
JBT's trailing twelve-month earnings (from 31 December 2019) of US$129m has jumped 24% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 23%, indicating the rate at which JBT is growing has accelerated. What's enabled this growth? Let's take a look at whether it is only due to an industry uplift, or if John Bean Technologies has seen some company-specific growth.
In terms of returns from investment, John Bean Technologies has invested its equity funds well leading to a 23% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 7.7% exceeds the US Machinery industry of 6.5%, indicating John Bean Technologies has used its assets more efficiently. However, its return on capital (ROC), which also accounts for John Bean Technologies’s debt level, has declined over the past 3 years from 15% to 14%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research John Bean Technologies to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for JBT’s future growth? Take a look at our free research report of analyst consensus for JBT’s outlook.
Financial Health: Are JBT’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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