Where Arvind SmartSpaces Limited's (NSE:ARVSMART) Earnings Growth Stands Against Its Industry
Assessing Arvind SmartSpaces Limited's (NSE:ARVSMART) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess ARVSMART's latest performance announced on 31 March 2019 and evaluate these figures to its historical trend and industry movements.
View our latest analysis for Arvind SmartSpaces
Did ARVSMART's recent performance beat its trend and industry?
ARVSMART's trailing twelve-month earnings (from 31 March 2019) of ₹307m has increased by 1.6% 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 24%, indicating the rate at which ARVSMART is growing has slowed down. What could be happening here? Well, let's look at what's transpiring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, Arvind SmartSpaces has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 6.5% exceeds the IN Real Estate industry of 3.0%, indicating Arvind SmartSpaces has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Arvind SmartSpaces’s debt level, has increased over the past 3 years from 17% to 20%.
What does this mean?
Though Arvind SmartSpaces's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Arvind SmartSpaces gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Arvind SmartSpaces to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ARVSMART’s future growth? Take a look at our free research report of analyst consensus for ARVSMART’s outlook.
Financial Health: Are ARVSMART’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 March 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.
