Yahoo Finance Where CalAmp Corp’s (NASDAQ:CAMP) Earnings Growth Stands Against Its Industry
Today I will examine CalAmp Corp’s (NASDAQ:CAMP) latest earnings update (31 May 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of CAMP’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
View our latest analysis for CalAmp
Did CAMP’s recent performance beat its trend and industry?
CAMP’s trailing twelve-month earnings (from 31 May 2018) of US$27.8m has
In terms of returns from investment, CalAmp has fallen short of achieving a 20% return on equity (ROE), recording 13.7% instead. However, its return on assets (ROA) of 7.2% exceeds the US Communications industry of 4.8%, indicating CalAmp has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for CalAmp’s debt level, has declined over the past 3 years from 8.5% to 1.2%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 6.3% to 77.2% over the past 5 years.
What does this mean?
Though CalAmp’s past data is helpful, it is only one aspect of my investment thesis. You should continue to research CalAmp to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CAMP’s future growth? Take a look at our free research report of analyst consensus for CAMP’s outlook.
Financial Health: Are CAMP’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 May 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.
