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Coats Group plc (LON:COA): Has Recent Earnings Growth Beaten Long-Term Trend?
After looking at Coats Group plc's (LSE:COA) latest earnings update (30 June 2017), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is an important aspect. In this article I briefly touch on my key findings. Check out our latest analysis for Coats Group
How COA fared against its long-term earnings performance and its industry
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to examine different stocks in a uniform manner using the most relevant data points. For Coats Group, its most recent trailing-twelve-month earnings is US$74.90M, which, against the previous year's figure, has risen by 46.58%. Since these values may be somewhat short-term thinking, I have computed an annualized five-year value for COA's earnings, which stands at -US$1.70M This suggests that, on average, Coats Group has been able to gradually raise its profits over the past couple of years as well.
What does this mean?
Coats Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Coats Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Coats Group to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for COA’s future growth? Take a look at our free research report of analyst consensus for COA’s outlook.
- 2. Financial Health: Is COA’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.
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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.
About LSE:COA
Coats Group
Engages in thread manufacturing, structural components for apparel and footwear, and performance materials worldwide.
Undervalued with reasonable growth potential.
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