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For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. Investors may find my commentary, albeit very high-level and brief, on TAKE Solutions Limited (NSE:TAKE) useful as an attempt to give more color around how TAKE Solutions is currently performing.
Check out our latest analysis for TAKE Solutions
How Did TAKE's Recent Performance Stack Up Against Its Past?
TAKE's trailing twelve-month earnings (from 31 March 2019) of ₹1.8b has jumped 10% 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 23%, indicating the rate at which TAKE is growing has slowed down. Why could this be happening? Well, let's look at what's going on with margins and if the whole industry is feeling the heat.
In terms of returns from investment, TAKE Solutions has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 8.7% exceeds the IN Healthcare Services industry of 6.9%, indicating TAKE Solutions has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for TAKE Solutions’s debt level, has declined over the past 3 years from 18% to 14%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While TAKE Solutions 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 TAKE Solutions to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for TAKE’s future growth? Take a look at our free research report of analyst consensus for TAKE’s outlook.
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Financial Health: Are TAKE’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.
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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.