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Today I will take a look at Tile Shop Holdings, Inc.'s (NASDAQ:TTS) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, as well as how the rest of the specialty retail industry performed. As an investor, I find it beneficial to assess TTS’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
Was TTS weak performance lately part of a long-term decline?
TTS recently turned a profit of US$10m (most recent trailing twelve-months) compared to its average loss of -US$1.7m over the past five years.
In terms of returns from investment, Tile Shop Holdings has fallen short of achieving a 20% return on equity (ROE), recording 7.1% instead. Furthermore, its return on assets (ROA) of 4.4% is below the US Specialty Retail industry of 7.1%, indicating Tile Shop Holdings's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Tile Shop Holdings’s debt level, has declined over the past 3 years from 15% to 7.6%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors impacting its business. You should continue to research Tile Shop Holdings to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TTS’s future growth? Take a look at our free research report of analyst consensus for TTS’s outlook.
- Financial Health: Are TTS’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 email@example.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.