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Assessing Genus Power Infrastructures Limited's (NSEI:GENUSPOWER) 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 GENUSPOWER's latest performance announced on 30 September 2019 and evaluate these figures to its historical trend and industry movements.
Check out our latest analysis for Genus Power Infrastructures
Did GENUSPOWER's recent earnings growth beat the long-term trend and the industry?
GENUSPOWER's trailing twelve-month earnings (from 30 September 2019) of ₹760m has jumped 15% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -0.1%, indicating the rate at which GENUSPOWER is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely because of an industry uplift, or if Genus Power Infrastructures has experienced some company-specific growth.
In terms of returns from investment, Genus Power Infrastructures has fallen short of achieving a 20% return on equity (ROE), recording 9.4% instead. However, its return on assets (ROA) of 7.0% exceeds the IN Electronic industry of 6.4%, indicating Genus Power Infrastructures has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Genus Power Infrastructures’s debt level, has increased over the past 3 years from 14% to 15%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 71% to 30% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Genus Power Infrastructures gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Genus Power Infrastructures to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for GENUSPOWER’s future growth? Take a look at our free research report of analyst consensus for GENUSPOWER’s outlook.
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Financial Health: Are GENUSPOWER’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.