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When Triveni Turbine Limited (NSE:TRITURBINE) announced its most recent earnings (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Triveni Turbine has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see TRITURBINE has performed.
Check out our latest analysis for Triveni Turbine
How Did TRITURBINE's Recent Performance Stack Up Against Its Past?
TRITURBINE's trailing twelve-month earnings (from 31 March 2019) of ₹1.0b has increased by 4.4% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.7%, indicating the rate at which TRITURBINE is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is merely because of industry tailwinds, or if Triveni Turbine has experienced some company-specific growth.
In terms of returns from investment, Triveni Turbine has invested its equity funds well leading to a 23% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the IN Electrical industry of 7.2%, indicating Triveni Turbine has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Triveni Turbine’s debt level, has declined over the past 3 years from 45% to 29%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There could be factors that are affecting the entire industry hence the high industry growth rate over the same time frame. I suggest you continue to research Triveni Turbine 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 TRITURBINE’s future growth? Take a look at our free research report of analyst consensus for TRITURBINE’s outlook.
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Financial Health: Are TRITURBINE’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.