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Examining Heritage Foods Limited's (NSEI:HERITGFOOD) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess HERITGFOOD's latest performance announced on 30 June 2019 and weigh these figures against its longer term trend and industry movements.
Check out our latest analysis for Heritage Foods
How Did HERITGFOOD's Recent Performance Stack Up Against Its Past?
HERITGFOOD's trailing twelve-month earnings (from 30 June 2019) of ₹807m has jumped 24% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 17%, indicating the rate at which HERITGFOOD is growing has accelerated. What's enabled this growth? Let's see whether it is solely because of an industry uplift, or if Heritage Foods has seen some company-specific growth.
In terms of returns from investment, Heritage Foods has fallen short of achieving a 20% return on equity (ROE), recording 9.9% instead. Furthermore, its return on assets (ROA) of 6.2% is below the IN Food industry of 6.8%, indicating Heritage Foods's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Heritage Foods’s debt level, has declined over the past 3 years from 32% to 11%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Heritage Foods gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Heritage Foods 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 HERITGFOOD’s future growth? Take a look at our free research report of analyst consensus for HERITGFOOD’s outlook.
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Financial Health: Are HERITGFOOD’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 30 June 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.