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When OraSure Technologies, Inc. (NASDAQ:OSUR) released its most recent earnings update (31 March 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were OraSure Technologies's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not OSUR actually performed well. Below is a quick commentary on how I see OSUR has performed.
Commentary On OSUR's Past Performance
OSUR's trailing twelve-month earnings (from 31 March 2019) of US$19m has jumped 18% 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 42%, indicating the rate at which OSUR is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s transpiring with margins and if the whole industry is feeling the heat.
In terms of returns from investment, OraSure Technologies has fallen short of achieving a 20% return on equity (ROE), recording 6.9% instead. Furthermore, its return on assets (ROA) of 6.0% is below the US Medical Equipment industry of 6.8%, indicating OraSure Technologies's are utilized less efficiently. However, its return on capital (ROC), which also accounts for OraSure Technologies’s debt level, has increased over the past 3 years from 6.6% to 10%.
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 OraSure Technologies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research OraSure Technologies to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for OSUR’s future growth? Take a look at our free research report of analyst consensus for OSUR’s outlook.
- Financial Health: Are OSUR’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 March 2019. 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.