Yahoo Finance Where Spirit AeroSystems Holdings, Inc. (NYSE:SPR) Stands In Terms Of Earnings Growth Against Its Industry
Today I will examine Spirit AeroSystems Holdings, Inc.'s (NYSE:SPR) latest earnings update (27 June 2019) and compare these figures against its performance over the past couple of years, in addition to how the rest of SPR's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
Check out our latest analysis for Spirit AeroSystems Holdings
Were SPR's earnings stronger than its past performances and the industry?
SPR's trailing twelve-month earnings (from 27 June 2019) of US$677m has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 16%, indicating the rate at which SPR is growing has accelerated. How has it been able to do this? Let's take a look at whether it is merely owing to industry tailwinds, or if Spirit AeroSystems Holdings has experienced some company-specific growth.
In terms of returns from investment, Spirit AeroSystems Holdings has invested its equity funds well leading to a 46% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 12% exceeds the US Aerospace & Defense industry of 6.6%, indicating Spirit AeroSystems Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Spirit AeroSystems Holdings’s debt level, has increased over the past 3 years from 18% to 21%.
What does this mean?
Spirit AeroSystems Holdings's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Spirit AeroSystems Holdings to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SPR’s future growth? Take a look at our free research report of analyst consensus for SPR’s outlook.
Financial Health: Are SPR’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 27 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.
