Interested In Maxim Integrated Products, Inc. (NASDAQ:MXIM)? Here's How It Performed Recently
When Maxim Integrated Products, Inc. (NASDAQ:MXIM) announced its most recent earnings (29 September 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 Maxim Integrated Products 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 MXIM has performed.
See our latest analysis for Maxim Integrated Products
Was MXIM's recent earnings decline worse than the long-term trend and the industry?
MXIM's trailing twelve-month earnings (from 29 September 2018) of US$510m has declined by -11% 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 12%, indicating the rate at which MXIM is growing has slowed down. Why could this be happening? Well, let's look at what's occurring with margins and whether the entire industry is experiencing the hit as well.
In terms of returns from investment, Maxim Integrated Products has invested its equity funds well leading to a 27% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 11% exceeds the US Semiconductor industry of 8.5%, indicating Maxim Integrated Products has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Maxim Integrated Products’s debt level, has increased over the past 3 years from 14% to 25%.
What does this mean?
Maxim Integrated Products'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 volatile earnings, can have many factors influencing its business. You should continue to research Maxim Integrated Products to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MXIM’s future growth? Take a look at our free research report of analyst consensus for MXIM’s outlook.
- Financial Health: Are MXIM’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 29 September 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.