Yahoo Finance Does Delegat Group Limited’s (NZSE:DGL) 15% Earnings Growth Make It An Outperformer?
Examining Delegat Group Limited’s (NZSE:DGL) 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 DGL’s latest performance announced on 30 June 2018 and compare these figures to its longer term trend and industry movements.
View our latest analysis for Delegat Group
How Well Did DGL Perform?
DGL’s trailing twelve-month earnings (from 30 June 2018) of NZ$47m has jumped 15% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.9%, indicating the rate at which DGL is growing has accelerated. How has it been able to do this? Let’s see if it is solely due to industry tailwinds, or if Delegat Group has experienced some company-specific growth.
In terms of returns from investment, Delegat Group has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 8.3% exceeds the NZ Beverage industry of 5.9%, indicating Delegat Group has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Delegat Group’s debt level, has declined over the past 3 years from 13% to 12%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 64% to 83% over the past 5 years.
What does this mean?
Delegat Group’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Delegat Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Delegat Group to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for DGL’s future growth? Take a look at our free research report of analyst consensus for DGL’s outlook.
Financial Health: Are DGL’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 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.
