In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
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 Carnival Corporation's (NYSE:CCL) 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 Carnival
How Well Did CCL Perform?
CCL's trailing twelve-month earnings (from 31 May 2019) of US$3.0b has increased by 5.7% 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 20%, indicating the rate at which CCL is growing has slowed down. Why could this be happening? Well, let's look at what's transpiring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Carnival has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 7.1% exceeds the US Hospitality industry of 6.0%, indicating Carnival has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Carnival’s debt level, has increased over the past 3 years from 7.7% to 9.5%.
What does this mean?
Carnival's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Carnival to get a better picture of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for CCL’s future growth? Take a look at our free research report of analyst consensus for CCL’s outlook.
-
Financial Health: Are CCL’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 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.