Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Concurrent Technologies Plc (LON:CNC) useful as an attempt to give more color around how Concurrent Technologies is currently performing.
View our latest analysis for Concurrent Technologies
Did CNC beat its long-term earnings growth trend and its industry?
CNC’s trailing twelve-month earnings (from 31 December 2018) of UK£3.0m has increased by 7.7% 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 17%, indicating the rate at which CNC is growing has slowed down. To understand what’s happening, let’s look at what’s transpiring with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Concurrent Technologies has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 12% exceeds the GB Tech industry of 6.0%, indicating Concurrent Technologies has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Concurrent Technologies’s debt level, has declined over the past 3 years from 20% to 15%.
What does this mean?
Concurrent Technologies’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 Concurrent Technologies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Concurrent Technologies to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CNC’s future growth? Take a look at our free research report of analyst consensus for CNC’s outlook.
- Financial Health: Are CNC’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 2018. 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.