Want To Invest In Bellway p.l.c. (LON:BWY)? Here's How It Performed Lately
When Bellway p.l.c. (LSE:BWY) announced its most recent earnings (31 July 2019), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Bellway performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see BWY has performed.
Check out our latest analysis for Bellway
How Did BWY's Recent Performance Stack Up Against Its Past?
BWY's trailing twelve-month earnings (from 31 July 2019) of UK£539m has increased by 3.6% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 18%, indicating the rate at which BWY is growing has slowed down. To understand what's happening, let's examine what's occurring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Bellway has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 14% exceeds the GB Consumer Durables industry of 9.1%, indicating Bellway has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Bellway’s debt level, has declined over the past 3 years from 25% to 22%.
What does this mean?
Bellway's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Bellway to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BWY’s future growth? Take a look at our free research report of analyst consensus for BWY’s outlook.
Financial Health: Are BWY’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 July 2019. This may not be consistent with full year annual report figures.
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.
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