Assessing Perficient, Inc.’s (NASDAQ:PRFT) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess PRFT’s recent performance announced on 31 December 2018 and evaluate these figures to its long-term trend and industry movements.
How Did PRFT’s Recent Performance Stack Up Against Its Past?
PRFT’s trailing twelve-month earnings (from 31 December 2018) of US$25m has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -1.2%, indicating the rate at which PRFT is growing has accelerated. What’s enabled this growth? Let’s see whether it is only because of an industry uplift, or if Perficient has experienced some company-specific growth.
In terms of returns from investment, Perficient has fallen short of achieving a 20% return on equity (ROE), recording 6.9% instead. Furthermore, its return on assets (ROA) of 4.9% is below the US IT industry of 5.8%, indicating Perficient’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Perficient’s debt level, has declined over the past 3 years from 8.8% to 8.0%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 7.4% to 34% over the past 5 years.
What does this mean?
Perficient’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Perficient to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for PRFT’s future growth? Take a look at our free research report of analyst consensus for PRFT’s outlook.
- Financial Health: Are PRFT’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 email@example.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.