In This Article:
Measuring Universal Cables Limited’s (NSE:UNIVCABLES) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess UNIVCABLES’s recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for Universal Cables
How UNIVCABLES fared against its long-term earnings performance and its industry
UNIVCABLES recently turned a profit of ₹827m (most recent trailing twelve-months) compared to its average loss of -₹31.7m over the past five years.
In terms of returns from investment, Universal Cables has fallen short of achieving a 20% return on equity (ROE), recording 9.9% instead. However, its return on assets (ROA) of 8.0% exceeds the IN Electrical industry of 6.6%, indicating Universal Cables has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Universal Cables’s debt level, has increased over the past 3 years from 3.7% to 9.2%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 113% to 47% over the past 5 years.
What does this mean?
Though Universal Cables’s past data is helpful, it is only one aspect of my investment thesis. While Universal Cables has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Universal Cables 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 UNIVCABLES’s future growth? Take a look at our free research report of analyst consensus for UNIVCABLES’s outlook.
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Financial Health: Are UNIVCABLES’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.