How Aritzia Inc's (TSE:ATZ) Earnings Growth Stacks Up Against The Industry

Assessing Aritzia Inc's (TSE:ATZ) 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 ATZ's recent performance announced on 27 May 2018 and evaluate these figures to its longer term trend and industry movements.

View our latest analysis for Aritzia

Did ATZ perform better than its track record and industry?

ATZ's trailing twelve-month earnings (from 27 May 2018) of CA$61.3m has

In terms of returns from investment, Aritzia has invested its equity funds well leading to a 20.3% return on equity (ROE), above the sensible minimum of 20%. However, its return on assets (ROA) of 11.1% is below the CA Luxury industry of 14.7%, indicating Aritzia's are utilized less efficiently. Though, its return on capital (ROC), which also accounts for Aritzia’s debt level, has increased over the past 3 years from 9.4% to 24.3%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. I recommend you continue to research Aritzia to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for ATZ’s future growth? Take a look at our free research report of analyst consensus for ATZ’s outlook.
2. Financial Health: Are ATZ’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 27 May 2018. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.