Yahoo Finance Interested In Fisher & Paykel Healthcare Corporation Limited (NZSE:FPH)? Here's What Its Recent Performance Looks Like
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Analyzing Fisher & Paykel Healthcare Corporation Limited's (NZSE:FPH) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess FPH's recent performance announced on 31 March 2019 and compare these figures to its long-term trend and industry movements.
See our latest analysis for Fisher & Paykel Healthcare
Were FPH's earnings stronger than its past performances and the industry?
FPH's trailing twelve-month earnings (from 31 March 2019) of NZ$209m has increased by 10.0% 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 16%, indicating the rate at which FPH is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Fisher & Paykel Healthcare has invested its equity funds well leading to a 23% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 17% exceeds the NZ Medical Equipment industry of 9.3%, indicating Fisher & Paykel Healthcare has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Fisher & Paykel Healthcare’s debt level, has declined over the past 3 years from 34% to 29%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Fisher & Paykel Healthcare 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 Fisher & Paykel Healthcare to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for FPH’s future growth? Take a look at our free research report of analyst consensus for FPH’s outlook.
Financial Health: Are FPH’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 March 2019. 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.
