How Does New Look Vision Group Inc.’s (TSE:BCI) Earnings Growth Stack Up Against Industry Performance?

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Today I will take a look at New Look Vision Group Inc.’s (TSE:BCI) most recent earnings update (30 March 2019) and compare these latest figures against its performance over the past few years, as well as how the rest of the specialty retail industry performed. As an investor, I find it beneficial to assess BCI’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.

See our latest analysis for New Look Vision Group

How Did BCI’s Recent Performance Stack Up Against Its Past?

BCI’s trailing twelve-month earnings (from 30 March 2019) of CA$14m has jumped 28% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 14%, indicating the rate at which BCI is growing has accelerated. What’s enabled this growth? Let’s take a look at if it is merely a result of industry tailwinds, or if New Look Vision Group has seen some company-specific growth.

TSX:BCI Income Statement, June 13th 2019
TSX:BCI Income Statement, June 13th 2019

In terms of returns from investment, New Look Vision Group has fallen short of achieving a 20% return on equity (ROE), recording 9.8% instead. Furthermore, its return on assets (ROA) of 6.7% is below the CA Specialty Retail industry of 7.1%, indicating New Look Vision Group’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for New Look Vision Group’s debt level, has declined over the past 3 years from 15% to 10%.

What does this mean?

New Look Vision Group’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While New Look Vision Group has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research New Look Vision Group to get a more holistic view of the stock by looking at:

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