Assessing Dart Group PLC's (LON:DTG) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess DTG's recent performance announced on 31 March 2019 and evaluate these figures to its long-term trend and industry movements.
See our latest analysis for Dart Group
Could DTG beat the long-term trend and outperform its industry?
DTG's trailing twelve-month earnings (from 31 March 2019) of UK£146m has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 30%, indicating the rate at which DTG is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is solely a result of industry tailwinds, or if Dart Group has seen some company-specific growth.
In terms of returns from investment, Dart Group has invested its equity funds well leading to a 24% return on equity (ROE), above the sensible minimum of 20%. However, its return on assets (ROA) of 5.8% is below the GB Airlines industry of 6.4%, indicating Dart Group's are utilized less efficiently. Furthermore, its return on capital (ROC), which also accounts for Dart Group’s debt level, has declined over the past 3 years from 29% to 13%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 5.4% to 88% over the past 5 years.
What does this mean?
Dart Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Dart Group to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for DTG’s future growth? Take a look at our free research report of analyst consensus for DTG’s outlook.
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Financial Health: Are DTG’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.
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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.