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Examining Raymond Limited's (NSE:RAYMOND) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess RAYMOND's latest performance announced on 30 June 2019 and weigh these figures against its longer term trend and industry movements.
Check out our latest analysis for Raymond
Could RAYMOND beat the long-term trend and outperform its industry?
RAYMOND's trailing twelve-month earnings (from 30 June 2019) of ₹1.5b has increased by 7.9% 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 9.6%, indicating the rate at which RAYMOND is growing has slowed down. Why could this be happening? Well, let's look at what's occurring with margins and if the whole industry is feeling the heat.
In terms of returns from investment, Raymond has fallen short of achieving a 20% return on equity (ROE), recording 7.9% instead. Furthermore, its return on assets (ROA) of 4.8% is below the IN Luxury industry of 6.2%, indicating Raymond's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Raymond’s debt level, has increased over the past 3 years from 11% to 16%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 124% to 121% over the past 5 years.
What does this mean?
Raymond'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 Raymond gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Raymond 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 RAYMOND’s future growth? Take a look at our free research report of analyst consensus for RAYMOND’s outlook.
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Financial Health: Are RAYMOND’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 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.