Yahoo Finance Does Maxim Integrated Products, Inc.'s (NASDAQ:MXIM) Recent Track Record Look Strong?
For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Maxim Integrated Products, Inc.'s (NasdaqGS:MXIM) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.
Check out our latest analysis for Maxim Integrated Products
Did MXIM's recent earnings growth beat the long-term trend and the industry?
MXIM's trailing twelve-month earnings (from 28 December 2019) of US$784m has increased by 9.7% 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 29%, indicating the rate at which MXIM is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and whether the entire industry is facing the same headwind.
In terms of returns from investment, Maxim Integrated Products has invested its equity funds well leading to a 45% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 21% exceeds the US Semiconductor industry of 6.9%, indicating Maxim Integrated Products has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Maxim Integrated Products’s debt level, has increased over the past 3 years from 16% to 20%.
What does this mean?
Though Maxim Integrated Products's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Maxim Integrated Products gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Maxim Integrated Products to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for MXIM’s future growth? Take a look at our free research report of analyst consensus for MXIM’s outlook.
Financial Health: Are MXIM’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.
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 28 December 2019. This may not be consistent with full year annual report figures.
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.
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