Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
When Jullundur Motor Agency (Delhi) Limited’s (NSE:JMA) announced its latest earnings (31 March 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Jullundur Motor Agency (Delhi)’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not JMA actually performed well. Below is a quick commentary on how I see JMA has performed.
Could JMA beat the long-term trend and outperform its industry?
JMA’s trailing twelve-month earnings (from 31 March 2019) of ₹160m has jumped 25% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -0.3%, indicating the rate at which JMA is growing has accelerated. What’s enabled this growth? Well, let’s take a look at if it is merely attributable to an industry uplift, or if Jullundur Motor Agency (Delhi) has experienced some company-specific growth.
In terms of returns from investment, Jullundur Motor Agency (Delhi) has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 6.5% exceeds the IN Retail Distributors industry of 1.0%, indicating Jullundur Motor Agency (Delhi) has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Jullundur Motor Agency (Delhi)’s debt level, has declined over the past 3 years from 13% to 11%.
What does this mean?
Jullundur Motor Agency (Delhi)’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 Jullundur Motor Agency (Delhi) gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Jullundur Motor Agency (Delhi) to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for JMA’s future growth? Take a look at our free research report of analyst consensus for JMA’s outlook.
- Financial Health: Are JMA’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 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 firstname.lastname@example.org. 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.