Assessing Raymond Limited’s (NSE:RAYMOND) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess RAYMOND’s latest performance announced on 31 December 2018 and evaluate these figures to its historical trend and industry movements.

View our latest analysis for Raymond

Did RAYMOND’s recent earnings growth beat the long-term trend and the industry?

RAYMOND’s trailing twelve-month earnings (from 31 December 2018) of ₹1.5b has jumped 34% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.2%, indicating the rate at which RAYMOND is growing has accelerated. What’s enabled this growth? Let’s take a look at if it is only attributable to industry tailwinds, or if Raymond has experienced some company-specific growth.

In terms of returns from investment, Raymond has fallen short of achieving a 20% return on equity (ROE), recording 8.4% instead. Furthermore, its return on assets (ROA) of 4.6% is below the IN Luxury industry of 5.9%, indicating Raymond’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Raymond’s debt level, has increased over the past 3 years from 8.6% to 15%.

What does this mean?

Though Raymond’s past data is helpful, it is only one aspect of my investment thesis. While Raymond has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Raymond to get a better picture of the stock by looking at:

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

2. Financial Health: Are RAYMOND’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 31 December 2018. 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.