For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Tyman plc's (LON:TYMN) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.

See our latest analysis for Tyman

How Did TYMN's Recent Performance Stack Up Against Its Past?

TYMN's trailing twelve-month earnings (from 30 June 2019) of UK£24m has declined by -18% 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 29%, indicating the rate at which TYMN is growing has slowed down. Why is this? Well, let's look at what's going on with margins and if the whole industry is experiencing the hit as well.

In terms of returns from investment, Tyman has fallen short of achieving a 20% return on equity (ROE), recording 5.7% instead. Furthermore, its return on assets (ROA) of 4.1% is below the GB Building industry of 6.9%, indicating Tyman's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Tyman’s debt level, has increased over the past 3 years from 5.3% to 6.8%.

What does this mean?

Though Tyman's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have unpredictable earnings, can have many factors affecting its business. I recommend you continue to research Tyman to get a more holistic view of the stock by looking at:

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

2. Financial Health: Are TYMN’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 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.