Measuring Integra LifeSciences Holdings Corporation's (NasdaqGS:IART) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess IART's recent performance announced on 31 December 2019 and compare these figures to its historical trend and industry movements.
Commentary On IART's Past Performance
IART's trailing twelve-month earnings (from 31 December 2019) of US$50m has declined by -17% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 20%, indicating the rate at which IART is growing has slowed down. What could be happening here? Let's examine what's transpiring with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Integra LifeSciences Holdings has fallen short of achieving a 20% return on equity (ROE), recording 3.5% instead. Furthermore, its return on assets (ROA) of 2.8% is below the US Medical Equipment industry of 6.8%, indicating Integra LifeSciences Holdings's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Integra LifeSciences Holdings’s debt level, has declined over the past 3 years from 9.4% to 8.8%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 90% to 98% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I recommend you continue to research Integra LifeSciences Holdings to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for IART’s future growth? Take a look at our free research report of analyst consensus for IART’s outlook.
- Financial Health: Are IART’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 December 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 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.
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. Thank you for reading.