Yahoo Finance Interested In Beacon Lighting Group Limited (ASX:BLX)? Here’s What Its Recent Performance Looks Like
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Measuring Beacon Lighting Group Limited’s (ASX:BLX) 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 BLX’s recent performance announced on 23 December 2018 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for Beacon Lighting Group
How Well Did BLX Perform?
BLX’s trailing twelve-month earnings (from 23 December 2018) of AU$20m 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 9.0%, indicating the rate at which BLX is growing has slowed down. To understand what’s happening, let’s take a look at what’s going on with margins and if the whole industry is facing the same headwind.
In terms of returns from investment, Beacon Lighting Group has invested its equity funds well leading to a 24% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the AU Specialty Retail industry of 7.8%, indicating Beacon Lighting Group has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Beacon Lighting Group’s debt level, has declined over the past 3 years from 48% to 32%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 37% to 40% over the past 5 years.
What does this mean?
Though Beacon Lighting Group’s past data is helpful, it is only one aspect of my investment thesis. While Beacon Lighting Group has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Beacon Lighting Group to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BLX’s future growth? Take a look at our free research report of analyst consensus for BLX’s outlook.
Financial Health: Are BLX’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 23 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.
