Does Cicor Technologies Ltd.'s (VTX:CICN) 45% Earnings Growth Reflect The Long-Term Trend?
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Measuring Cicor Technologies Ltd.'s (VTX:CICN) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess CICN's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.
See our latest analysis for Cicor Technologies
How CICN fared against its long-term earnings performance and its industry
CICN's trailing twelve-month earnings (from 31 December 2018) of CHF9.6m has jumped 45% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 12%, indicating the rate at which CICN is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is solely owing to an industry uplift, or if Cicor Technologies has seen some company-specific growth.
In terms of returns from investment, Cicor Technologies has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. Furthermore, its return on assets (ROA) of 5.5% is below the CH Electronic industry of 6.9%, indicating Cicor Technologies's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Cicor Technologies’s debt level, has increased over the past 3 years from 2.8% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Cicor Technologies has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Cicor Technologies to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for CICN’s future growth? Take a look at our free research report of analyst consensus for CICN’s outlook.
Financial Health: Are CICN’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 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.
