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Examining FW Thorpe Plc’s (LON:TFW) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess TFW’s latest performance announced on 30 June 2018 and weight these figures against its longer term trend and industry movements.
See our latest analysis for FW Thorpe
How Well Did TFW Perform?
TFW’s trailing twelve-month earnings (from 30 June 2018) of UK£16m has jumped 11% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 11%, indicating the rate at which TFW is growing has accelerated. What’s enabled this growth? Let’s take a look at if it is merely owing to industry tailwinds, or if FW Thorpe has experienced some company-specific growth.
In terms of returns from investment, FW Thorpe has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 11% exceeds the GB Electrical industry of 9.1%, indicating FW Thorpe has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for FW Thorpe’s debt level, has declined over the past 3 years from 16% to 16%.
What does this mean?
FW Thorpe’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 FW Thorpe gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research FW Thorpe 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 TFW’s future growth? Take a look at our free research report of analyst consensus for TFW’s outlook.
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Financial Health: Are TFW’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 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.