Advertisement
New Zealand markets closed
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NZD/USD

    0.5977
    -0.0028 (-0.47%)
     
  • NZD/EUR

    0.5534
    -0.0009 (-0.16%)
     
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    83.11
    +1.76 (+2.16%)
     
  • GOLD

    2,254.80
    +42.10 (+1.90%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • NZD/JPY

    90.4460
    -0.3340 (-0.37%)
     

Where FleetCor Technologies Inc (NYSE:FLT) Stands In Terms Of Earnings Growth Against Its Industry

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at FleetCor Technologies Inc’s (NYSE:FLT) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.

See our latest analysis for FleetCor Technologies

How FLT fared against its long-term earnings performance and its industry

FLT’s trailing twelve-month earnings (from 30 September 2018) of US$792m has jumped 43% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22%, indicating the rate at which FLT is growing has accelerated. What’s the driver of this growth? Let’s take a look at if it is only owing to industry tailwinds, or if FleetCor Technologies has experienced some company-specific growth.

NYSE:FLT Income Statement Export November 1st 18
NYSE:FLT Income Statement Export November 1st 18

In terms of returns from investment, FleetCor Technologies has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 8.1% exceeds the US IT industry of 6.8%, indicating FleetCor Technologies has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for FleetCor Technologies’s debt level, has increased over the past 3 years from 9.9% to 11%.

What does this mean?

Though FleetCor Technologies’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research FleetCor Technologies to get a better picture of the stock by looking at:

ADVERTISEMENT
  1. Future Outlook: What are well-informed industry analysts predicting for FLT’s future growth? Take a look at our free research report of analyst consensus for FLT’s outlook.

  2. Financial Health: Are FLT’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.

  3. 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 September 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.