Measuring Cohort plc's (AIM:CHRT) 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 CHRT's recent performance announced on 31 October 2019 and compare these figures to its historical trend and industry movements.
How CHRT fared against its long-term earnings performance and its industry
CHRT's trailing twelve-month earnings (from 31 October 2019) of UK£7.3m has jumped 23% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.7%, indicating the rate at which CHRT is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is solely attributable to industry tailwinds, or if Cohort has seen some company-specific growth.
In terms of returns from investment, Cohort has fallen short of achieving a 20% return on equity (ROE), recording 9.2% instead. Furthermore, its return on assets (ROA) of 5.2% is below the GB Aerospace & Defense industry of 5.6%, indicating Cohort's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Cohort’s debt level, has increased over the past 3 years from 5.6% to 8.1%.
What does this mean?
Cohort's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Cohort has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Cohort to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CHRT’s future growth? Take a look at our free research report of analyst consensus for CHRT’s outlook.
- Financial Health: Are CHRT’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 October 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 firstname.lastname@example.org. 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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