Examining Mold-Tek Packaging Limited’s (NSE:MOLDTKPAC) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess MOLDTKPAC’s latest performance announced on 31 December 2018 and compare these figures to its longer term trend and industry movements.

Check out our latest analysis for Mold-Tek Packaging

How Well Did MOLDTKPAC Perform?

MOLDTKPAC’s trailing twelve-month earnings (from 31 December 2018) of ₹299m has increased by 9.2% 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 21%, indicating the rate at which MOLDTKPAC is growing has slowed down. What could be happening here? Well, let’s look at what’s occurring with margins and whether the whole industry is facing the same headwind.

In terms of returns from investment, Mold-Tek Packaging has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 11% exceeds the IN Packaging industry of 7.7%, indicating Mold-Tek Packaging has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Mold-Tek Packaging’s debt level, has increased over the past 3 years from 24% to 27%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 124% to 53% over the past 5 years.

What does this mean?

Mold-Tek Packaging’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? You should continue to research Mold-Tek Packaging to get a better picture of the stock by looking at:

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

2. Financial Health: Are MOLDTKPAC’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.