Examining Oxford Industries, Inc.'s (NYSE:OXM) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess OXM's latest performance announced on 04 May 2019 and weigh these figures against its longer term trend and industry movements.
Did OXM's recent earnings growth beat the long-term trend and the industry?
OXM's trailing twelve-month earnings (from 04 May 2019) of US$67m has declined by -1.0% 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 5.5%, indicating the rate at which OXM is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and if the rest of the industry is feeling the heat.
In terms of returns from investment, Oxford Industries has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. Furthermore, its return on assets (ROA) of 6.8% is below the US Luxury industry of 6.9%, indicating Oxford Industries's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Oxford Industries’s debt level, has declined over the past 3 years from 16% to 11%.
What does this mean?
Though Oxford Industries's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have volatile earnings, can have many factors affecting its business. You should continue to research Oxford Industries to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for OXM’s future growth? Take a look at our free research report of analyst consensus for OXM’s outlook.
- Financial Health: Are OXM’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 04 May 2019. This may not be consistent with full year annual report figures.
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