Yahoo Finance Does Port of Tauranga Limited's (NZSE:POT) 8.4% Earnings Growth Reflect The Long-Term Trend?
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Measuring Port of Tauranga Limited's (NZSE:POT) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess POT's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.
View our latest analysis for Port of Tauranga
Did POT's recent earnings growth beat the long-term trend and the industry?
POT's trailing twelve-month earnings (from 31 December 2018) of NZ$96m has increased by 8.4% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 4.2%, indicating the rate at which POT is growing has accelerated. What's enabled this growth? Let's see whether it is merely a result of an industry uplift, or if Port of Tauranga has experienced some company-specific growth.
In terms of returns from investment, Port of Tauranga has fallen short of achieving a 20% return on equity (ROE), recording 8.8% instead. However, its return on assets (ROA) of 6.8% exceeds the NZ Infrastructure industry of 6.5%, indicating Port of Tauranga has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Port of Tauranga’s debt level, has declined over the past 3 years from 10% to 10%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 31% to 43% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Port of Tauranga gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Port of Tauranga to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for POT’s future growth? Take a look at our free research report of analyst consensus for POT’s outlook.
Financial Health: Are POT’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 editorial-team@simplywallst.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.
