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Want To Invest In TrueBlue, Inc. (NYSE:TBI)? Here's How It Performed Lately

Simply Wall St

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at TrueBlue, Inc.'s (NYSE:TBI) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.

View our latest analysis for TrueBlue

Could TBI beat the long-term trend and outperform its industry?

TBI's trailing twelve-month earnings (from 30 December 2018) of US$66m has jumped 19% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -1.5%, indicating the rate at which TBI is growing has accelerated. How has it been able to do this? Let's take a look at whether it is solely due to an industry uplift, or if TrueBlue has experienced some company-specific growth.

NYSE:TBI Income Statement, April 22nd 2019

In terms of returns from investment, TrueBlue has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 5.8% is below the US Professional Services industry of 6.0%, indicating TrueBlue's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for TrueBlue’s debt level, has declined over the past 3 years from 9.6% to 9.1%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 8.1% to 14% over the past 5 years.

What does this mean?

While past data is useful, it 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 TrueBlue to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for TBI’s future growth? Take a look at our free research report of analyst consensus for TBI’s outlook.
  2. Financial Health: Are TBI’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.
  3. 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 30 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 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. Thank you for reading.