In This Article:
Improvement in profitability and outperformance against the industry can be important characteristics in a stock for some investors. Below, I will assess Cords Cable Industries Limited's (NSE:CORDSCABLE) 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.
Check out our latest analysis for Cords Cable Industries
How Well Did CORDSCABLE Perform?
CORDSCABLE's trailing twelve-month earnings (from 31 March 2019) of ₹74m has jumped 17% 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 29%, indicating the rate at which CORDSCABLE is growing has slowed down. To understand what's happening, let's examine what's transpiring with margins and if the entire industry is experiencing the hit as well.
In terms of returns from investment, Cords Cable Industries has fallen short of achieving a 20% return on equity (ROE), recording 5.5% instead. However, its return on assets (ROA) of 10% exceeds the IN Electrical industry of 7.1%, indicating Cords Cable Industries has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Cords Cable Industries’s debt level, has increased over the past 3 years from 18% to 21%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 68% to 60% over the past 5 years.
What does this mean?
Cords Cable Industries's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Cords Cable Industries gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Cords Cable Industries to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for CORDSCABLE’s future growth? Take a look at our free research report of analyst consensus for CORDSCABLE’s outlook.
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Financial Health: Are CORDSCABLE’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.