Yahoo Finance Has Henry Boot PLC (LON:BOOT) Improved Earnings Growth In Recent Times?
Measuring Henry Boot PLC’s (LSE:BOOT) track record of past performance is a useful exercise for investors. It enables 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 BOOT’s recent performance announced on 31 December 2017 and weigh these figures against its long-term trend and industry movements. View our latest analysis for Henry Boot
How Did BOOT’s Recent Performance Stack Up Against Its Past?
For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to assess many different companies on a similar basis, using the most relevant data points. For Henry Boot, its most recent trailing-twelve-month earnings is UK£42.35M, which, in comparison to the previous year’s figure, has increased by 49.97%. Given that these values may be relatively short-term, I have estimated an annualized five-year figure for Henry Boot’s net income, which stands at UK£18.90M This shows that, on average, Henry Boot has been able to steadily grow its earnings over the past few years as well.
What’s enabled this growth? Let’s take a look at whether it is only a result of an industry uplift, or if Henry Boot has experienced some company-specific growth. Over the past few years, Henry Boot expanded its bottom line faster than revenue by efficiently controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the UK consumer durables industry has been growing its average earnings by double-digit 19.67% over the past year, and 24.04% over the previous five years. This means any uplift the industry is gaining from, Henry Boot is able to leverage this to its advantage.
What does this mean?
Though Henry Boot’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Henry Boot to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BOOT’s future growth? Take a look at our free research report of analyst consensus for BOOT’s outlook.
Financial Health: Is BOOT’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 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
