Assessing Vishay Precision Group, Inc.’s (NYSE:VPG) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess VPG’s recent performance announced on 29 June 2019 and evaluate these figures to its longer term trend and industry movements.
How Well Did VPG Perform?
VPG’s trailing twelve-month earnings (from 29 June 2019) of US$25m has jumped 16% 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 47%, indicating the rate at which VPG is growing has slowed down. To understand what’s happening, let’s look at what’s occurring with margins and whether the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Vishay Precision Group has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 7.5% exceeds the US Electronic industry of 6.9%, indicating Vishay Precision Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Vishay Precision Group’s debt level, has increased over the past 3 years from 5.8% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 12% to 11% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Vishay Precision Group has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Vishay Precision Group to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for VPG’s future growth? Take a look at our free research report of analyst consensus for VPG’s outlook.
- Financial Health: Are VPG’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 29 June 2019. This may not be consistent with full year annual report figures.
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