Assessing Tabcorp Holdings Limited’s (ASX:TAH) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess TAH’s recent performance announced on 30 June 2018 and evaluate these figures to its longer term trend and industry movements.
Did TAH’s recent performance beat its trend and industry?
TAH’s trailing twelve-month earnings (from 30 June 2018) of AU$28.7m has
In terms of returns from investment, Tabcorp Holdings has fallen short of achieving a 20% return on equity (ROE), recording 0.4% instead. Furthermore, its return on assets (ROA) of 1.1% is below the AU Hospitality industry of 7.4%, indicating Tabcorp Holdings’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Tabcorp Holdings’s debt level, has declined over the past 3 years from 9.0% to 1.8%.
What does this mean?
Tabcorp Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. I recommend you continue to research Tabcorp Holdings to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TAH’s future growth? Take a look at our free research report of analyst consensus for TAH’s outlook.
- Financial Health: Are TAH’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 firstname.lastname@example.org.