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When John B. Sanfilippo & Son, Inc.’s (NASDAQ:JBSS) announced its latest earnings (27 December 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were John B. Sanfilippo & Son’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not JBSS actually performed well. Below is a quick commentary on how I see JBSS has performed.
Did JBSS perform better than its track record and industry?
JBSS’s trailing twelve-month earnings (from 27 December 2018) of US$32m has increased by 1.7% 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 6.1%, indicating the rate at which JBSS is growing has slowed down. Why could this be happening? Well, let’s examine what’s transpiring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, John B. Sanfilippo & Son has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 8.6% exceeds the US Food industry of 7.9%, indicating John B. Sanfilippo & Son has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for John B. Sanfilippo & Son’s debt level, has declined over the past 3 years from 19% to 17%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as John B. Sanfilippo & Son gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research John B. Sanfilippo & Son to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for JBSS’s future growth? Take a look at our free research report of analyst consensus for JBSS’s outlook.
- Financial Health: Are JBSS’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 27 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. On rare occasion, data errors may occur. Thank you for reading.