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Measuring TT Electronics plc's (LON:TTG) 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 TTG's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.

See our latest analysis for TT Electronics

Despite a decline, did TTG underperform the long-term trend and the industry?

TTG's trailing twelve-month earnings (from 31 December 2018) of UK£13m has declined by -17% compared to the previous year.

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 34%, indicating the rate at which TTG is growing has slowed down. Why is this? Well, let’s take a look at what’s going on with margins and whether the whole industry is feeling the heat.

In terms of returns from investment, TT Electronics has fallen short of achieving a 20% return on equity (ROE), recording 4.7% instead. Furthermore, its return on assets (ROA) of 3.1% is below the GB Electronic industry of 7.4%, indicating TT Electronics's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for TT Electronics’s debt level, has declined over the past 3 years from 5.1% to 4.5%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 14% to 29% over the past 5 years.

What does this mean?

TT Electronics's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors impacting its business. I recommend you continue to research TT Electronics to get a better picture of the stock by looking at:

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

2. Financial Health: Are TTG’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.