Was Marine Products Corporation’s (NYSE:MPX) Earnings Growth Better Than The Industry’s?

Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Marine Products Corporation’s (NYSE:MPX) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.

View our latest analysis for Marine Products

Were MPX’s earnings stronger than its past performances and the industry?

MPX’s trailing twelve-month earnings (from 31 December 2018) of US$28m has jumped 48% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 25%, indicating the rate at which MPX is growing has accelerated. What’s enabled this growth? Let’s take a look at whether it is merely due to industry tailwinds, or if Marine Products has seen some company-specific growth.

NYSE:MPX Income Statement, March 26th 2019
NYSE:MPX Income Statement, March 26th 2019

In terms of returns from investment, Marine Products has invested its equity funds well leading to a 38% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 28% exceeds the US Leisure industry of 9.5%, indicating Marine Products has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Marine Products’s debt level, has increased over the past 3 years from 21% to 43%.

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 Marine Products gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Marine Products to get a more holistic view of the stock by looking at:

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