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When Kabra Extrusiontechnik Limited (NSE:KABRAEXTRU) announced its most recent earnings (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Kabra Extrusiontechnik has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see KABRAEXTRU has performed.
Did KABRAEXTRU perform worse than its track record and industry?
KABRAEXTRU’s trailing twelve-month earnings (from 31 March 2018) of ₹200m has declined by -2.1% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 21%, indicating the rate at which KABRAEXTRU is growing has slowed down. Why is this? Well, let’s take a look at what’s occurring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Kabra Extrusiontechnik has fallen short of achieving a 20% return on equity (ROE), recording 8.6% instead. Furthermore, its return on assets (ROA) of 5.7% is below the IN Machinery industry of 7.2%, indicating Kabra Extrusiontechnik’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Kabra Extrusiontechnik’s debt level, has declined over the past 3 years from 15% to 8.6%.
What does this mean?
Kabra Extrusiontechnik’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. I suggest you continue to research Kabra Extrusiontechnik to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for KABRAEXTRU’s future growth? Take a look at our free research report of analyst consensus for KABRAEXTRU’s outlook.
- Financial Health: Are KABRAEXTRU’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 March 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 email@example.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.