How Does Cigniti Technologies Limited’s (NSE:CIGNITITEC) Earnings Growth Stack Up Against The Industry?

Understanding how Cigniti Technologies Limited (NSEI:CIGNITITEC) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Cigniti Technologies is doing by comparing its latest earnings with its long-term trend as well as the performance of its it industry peers.

See our latest analysis for Cigniti Technologies

Commentary On CIGNITITEC’s Past Performance

CIGNITITEC recently turned a profit of ₹1.2b (most recent trailing twelve-months) compared to its average loss of -₹182.9m over the past five years.

NSEI:CIGNITITEC Income Statement, November 20th 2019
NSEI:CIGNITITEC Income Statement, November 20th 2019

In terms of returns from investment, Cigniti Technologies has invested its equity funds well leading to a 59% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 30% exceeds the IN IT industry of 9.0%, indicating Cigniti Technologies has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Cigniti Technologies’s debt level, has increased over the past 3 years from 25% to 57%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Cigniti Technologies has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Cigniti Technologies to get a better picture of the stock by looking at:

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