Assessing MRC Global Inc.'s (NYSE:MRC) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess MRC's recent performance announced on 31 March 2019 and evaluate these figures to its long-term trend and industry movements.
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How Well Did MRC Perform?
MRC's trailing twelve-month earnings (from 31 March 2019) of US$50m has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -8.7%, indicating the rate at which MRC is growing has accelerated. What's the driver of this growth? Let's take a look at if it is merely a result of industry tailwinds, or if MRC Global has experienced some company-specific growth.
In terms of returns from investment, MRC Global has fallen short of achieving a 20% return on equity (ROE), recording 7.2% instead. Furthermore, its return on assets (ROA) of 3.4% is below the US Trade Distributors industry of 5.8%, indicating MRC Global's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for MRC Global’s debt level, has declined over the past 3 years from 6.5% to 6.5%.
What does this mean?
Though MRC Global's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as MRC Global gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research MRC Global to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MRC’s future growth? Take a look at our free research report of analyst consensus for MRC’s outlook.
- Financial Health: Are MRC’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 March 2019. 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.