Assessing Portland General Electric Company’s (NYSE:POR) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess POR’s latest performance announced on 30 June 2019 and evaluate these figures to its historical trend and industry movements.
How Well Did POR Perform?
POR’s trailing twelve-month earnings (from 30 June 2019) of US$200m has increased by 4.2% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 4.5%, indicating the rate at which POR is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and if the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Portland General Electric has fallen short of achieving a 20% return on equity (ROE), recording 7.9% instead. Furthermore, its return on assets (ROA) of 4.1% is below the US Electric Utilities industry of 4.5%, indicating Portland General Electric’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Portland General Electric’s debt level, has declined over the past 3 years from 4.5% to 4.2%.
What does this mean?
Portland General Electric’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Portland General Electric has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Portland General Electric to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for POR’s future growth? Take a look at our free research report of analyst consensus for POR’s outlook.
- Financial Health: Are POR’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 30 June 2019. This may not be consistent with full year annual report figures.
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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.