Has Teleflex Incorporated (NYSE:TFX) Improved Earnings Growth In Recent Times?
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Measuring Teleflex Incorporated's (NYSE:TFX) 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 TFX's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for Teleflex
How Did TFX's Recent Performance Stack Up Against Its Past?
TFX's trailing twelve-month earnings (from 31 December 2018) of US$196m has jumped 27% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -1.5%, indicating the rate at which TFX is growing has accelerated. What's enabled this growth? Let's see whether it is only a result of an industry uplift, or if Teleflex has experienced some company-specific growth.
In terms of returns from investment, Teleflex has fallen short of achieving a 20% return on equity (ROE), recording 7.7% instead. Furthermore, its return on assets (ROA) of 4.8% is below the US Medical Equipment industry of 6.9%, indicating Teleflex's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Teleflex’s debt level, has declined over the past 3 years from 10% to 8.6%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 67% to 85% over the past 5 years.
What does this mean?
Teleflex's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Teleflex gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Teleflex to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TFX’s future growth? Take a look at our free research report of analyst consensus for TFX’s outlook.
Financial Health: Are TFX’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 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. Thank you for reading.
