Yahoo Finance Did Sensata Technologies Holding plc's (NYSE:ST) Recent Earnings Growth Beat The Trend?
When Sensata Technologies Holding plc (NYSE:ST) announced its most recent earnings (30 June 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Sensata Technologies Holding has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see ST has performed.
Check out our latest analysis for Sensata Technologies Holding
How Did ST's Recent Performance Stack Up Against Its Past?
ST's trailing twelve-month earnings (from 30 June 2019) of US$562m has jumped 24% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 17%, indicating the rate at which ST is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is only due to industry tailwinds, or if Sensata Technologies Holding has seen some company-specific growth.
In terms of returns from investment, Sensata Technologies Holding has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 10% exceeds the US Electrical industry of 8.2%, indicating Sensata Technologies Holding has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Sensata Technologies Holding’s debt level, has increased over the past 3 years from 8.4% to 10%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 150% to 123% over the past 5 years.
What does this mean?
Sensata Technologies Holding's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Sensata Technologies Holding gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Sensata Technologies Holding to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ST’s future growth? Take a look at our free research report of analyst consensus for ST’s outlook.
Financial Health: Are ST’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 30 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.
