Examining Portland General Electric Company’s (NYSE:POR) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess POR’s latest performance announced on 31 December 2018 and weight these figures against its longer term trend and industry movements.
Did POR beat its long-term earnings growth trend and its industry?
POR’s trailing twelve-month earnings (from 31 December 2018) of US$212m has jumped 13% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 7.6%, indicating the rate at which POR is growing has accelerated. How has it been able to do this? Let’s take a look at if it is only attributable to an industry uplift, or if Portland General Electric has experienced some company-specific growth.
In terms of returns from investment, Portland General Electric has fallen short of achieving a 20% return on equity (ROE), recording 8.5% instead. Furthermore, its return on assets (ROA) of 4.2% is below the US Electric Utilities industry of 4.2%, 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 4.7% to 4.4%.
What does this mean?
Though Portland General Electric’s past data is helpful, it is only one aspect of my investment thesis. 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. You should 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 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 firstname.lastname@example.org. 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.