In This Article:
Examining how Navin Fluorine International Limited (NSE:NAVINFLUOR) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Navin Fluorine International is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its chemicals industry peers.
Check out our latest analysis for Navin Fluorine International
How Well Did NAVINFLUOR Perform?
NAVINFLUOR’s trailing twelve-month earnings (from 31 March 2018) of ₹1.8b has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 28%, indicating the rate at which NAVINFLUOR is growing has accelerated. How has it been able to do this? Let’s see whether it is solely because of an industry uplift, or if Navin Fluorine International has seen some company-specific growth.
In terms of returns from investment, Navin Fluorine International has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 12% exceeds the IN Chemicals industry of 8.6%, indicating Navin Fluorine International has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Navin Fluorine International’s debt level, has increased over the past 3 years from 10% to 20%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 16% to 1.3% over the past 5 years.
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 Navin Fluorine International gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Navin Fluorine International 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 NAVINFLUOR’s future growth? Take a look at our free research report of analyst consensus for NAVINFLUOR’s outlook.
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Financial Health: Are NAVINFLUOR’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 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.