Yahoo Finance Interested In Vista Group International Limited (NZSE:VGL)? Here's How It Performed Recently
In this commentary, I will examine Vista Group International Limited's (NZSE:VGL) latest earnings update (30 June 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the software industry performed. As an investor, I find it beneficial to assess VGL’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
See our latest analysis for Vista Group International
How Well Did VGL Perform?
VGL's trailing twelve-month earnings (from 30 June 2019) of NZ$11m has increased by 0.1% 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 12%, indicating the rate at which VGL is growing has slowed down. To understand what's happening, let's examine what's going on with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Vista Group International has fallen short of achieving a 20% return on equity (ROE), recording 7.1% instead. Furthermore, its return on assets (ROA) of 5.4% is below the NZ Software industry of 8.4%, indicating Vista Group International's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Vista Group International’s debt level, has declined over the past 3 years from 16% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Recent positive growth isn't always indicative of a continued optimistic outlook. There may be factors that are impacting the entire industry thus the high industry growth rate over the same period of time. I recommend you continue to research Vista Group International to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for VGL’s future growth? Take a look at our free research report of analyst consensus for VGL’s outlook.
Financial Health: Are VGL’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.
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.
