Yahoo Finance Was Qube Holdings Limited's (ASX:QUB) Earnings Decline Part Of A Broader Industry Downturn?
For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Qube Holdings Limited (ASX:QUB) useful as an attempt to give more color around how Qube Holdings is currently performing.
See our latest analysis for Qube Holdings
Commentary On QUB's Past Performance
QUB's trailing twelve-month earnings (from 31 December 2019) of AU$187m has declined by -13% 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 23%, indicating the rate at which QUB is growing has slowed down. What could be happening here? Well, let's look at what's occurring with margins and whether the whole industry is experiencing the hit as well.
In terms of returns from investment, Qube Holdings has fallen short of achieving a 20% return on equity (ROE), recording 6.6% instead. Furthermore, its return on assets (ROA) of 3.8% is below the AU Infrastructure industry of 5.2%, indicating Qube Holdings's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Qube Holdings’s debt level, has increased over the past 3 years from 3.0% to 3.0%.
What does this mean?
Though Qube Holdings's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I recommend you continue to research Qube Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for QUB’s future growth? Take a look at our free research report of analyst consensus for QUB’s outlook.
Financial Health: Are QUB’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 31 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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