Yahoo Finance Has Exelon Corporation (NASDAQ:EXC) Improved Earnings Growth In Recent Times?
Examining Exelon Corporation's (NasdaqGS:EXC) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess EXC's latest performance announced on 31 December 2019 and weight these figures against its longer term trend and industry movements.
Check out our latest analysis for Exelon
Were EXC's earnings stronger than its past performances and the industry?
EXC's trailing twelve-month earnings (from 31 December 2019) of US$2.9b has jumped 46% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which EXC 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 an industry uplift, or if Exelon has seen some company-specific growth.
In terms of returns from investment, Exelon has fallen short of achieving a 20% return on equity (ROE), recording 8.8% instead. Furthermore, its return on assets (ROA) of 3.6% is below the US Electric Utilities industry of 4.2%, indicating Exelon's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Exelon’s debt level, has declined over the past 3 years from 4.2% to 4.1%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 92% to 109% over the past 5 years.
What does this mean?
Exelon's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Exelon has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Exelon to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for EXC’s future growth? Take a look at our free research report of analyst consensus for EXC’s outlook.
Financial Health: Are EXC’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 2019. This may not be consistent with full year annual report figures.
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.
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