After reading Symantec Corporation’s (NASDAQ:SYMC) latest earnings update (30 March 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether SYMC has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways.
Commentary On SYMC’s Past PerformanceSYMC’s trailing twelve-month earnings (from 30 March 2018) of US$1.15b has In terms of returns from investment, Symantec has invested its equity funds well leading to a 22.77% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 8.93% exceeds the US Software industry of 7.84%, indicating Symantec has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Symantec’s debt level, has declined over the past 3 years from 3.15% to 1.63%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 56.04% to 99.41% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. You should continue to research Symantec to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for SYMC’s future growth? Take a look at our free research report of analyst consensus for SYMC’s outlook.
- Financial Health: Is SYMC’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.
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 email@example.com.