Should Perceptron Inc’s (NASDAQ:PRCP) Recent Earnings Worry You?
Examining Perceptron Inc’s (NASDAQ:PRCP) 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 PRCP’s latest performance announced on 30 June 2018 and compare these figures to its longer term trend and industry movements.
See our latest analysis for Perceptron
Commentary On PRCP’s Past Performance
PRCP recently turned a profit of US$3.7m (most recent trailing twelve-months) compared to its average loss of -US$1.0m over the past five years.
In the past couple of years, Perceptron top-line expansion has outstripped earnings and the growth rate of expenses. Though this resulted in a margin contraction, it has cushioned Perceptron’s earnings contraction.
Eyeballing growth from a sector-level, the US electronic industry has been growing, albeit, at a muted single-digit rate of 6.0% over the past twelve months, and 6.4% over the past five years. This growth is a median of profitable companies of 25 Electronic companies in US including Bonso Electronics International, Coda Octopus Group and AmpliTech Group. This means that whatever tailwind the industry is enjoying, Perceptron has not been able to realize the gains unlike its average peer.
In terms of returns from investment, Perceptron has fallen short of achieving a 20% return on equity (ROE), recording 8.1% instead. Furthermore, its return on assets (ROA) of 5.3% is below the US Electronic industry of 6.0%, indicating Perceptron’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Perceptron’s debt level, has increased over the past 3 years from 3.0% to 10.6%.
What does this mean?
Perceptron’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. I suggest you continue to research Perceptron to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for PRCP’s future growth? Take a look at our free research report of analyst consensus for PRCP’s outlook.
Financial Health: Are PRCP’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 30 June 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 editorial-team@simplywallst.com.
