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Measuring Alpha Pro Tech, Ltd.’s (NYSEMKT:APT) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess APT’s recent performance announced on 31 December 2018 and weigh these figures against its long-term trend and industry movements.
Did APT beat its long-term earnings growth trend and its industry?
APT’s trailing twelve-month earnings (from 31 December 2018) of US$3.6m has jumped 38% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.2%, indicating the rate at which APT is growing has accelerated. What’s the driver of this growth? Well, let’s take a look at if it is solely due to industry tailwinds, or if Alpha Pro Tech has seen some company-specific growth.
In terms of returns from investment, Alpha Pro Tech has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 11% exceeds the US Building industry of 8.6%, indicating Alpha Pro Tech has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Alpha Pro Tech’s debt level, has increased over the past 3 years from 4.0% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Alpha Pro Tech gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Alpha Pro Tech to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for APT’s future growth? Take a look at our free research report of analyst consensus for APT’s outlook.
- Financial Health: Are APT’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 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.