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When The Mission Marketing Group plc's (LON:TMMG) announced its latest earnings (31 December 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Mission Marketing Group's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not TMMG actually performed well. Below is a quick commentary on how I see TMMG has performed.
Check out our latest analysis for Mission Marketing Group
How Did TMMG's Recent Performance Stack Up Against Its Past?
TMMG's trailing twelve-month earnings (from 31 December 2018) of UK£5.7m has jumped 43% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 8.9%, indicating the rate at which TMMG is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is only a result of an industry uplift, or if Mission Marketing Group has experienced some company-specific growth.
In terms of returns from investment, Mission Marketing Group has fallen short of achieving a 20% return on equity (ROE), recording 6.6% instead. Furthermore, its return on assets (ROA) of 4.2% is below the GB Media industry of 5.4%, indicating Mission Marketing Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Mission Marketing Group’s debt level, has increased over the past 3 years from 6.7% to 7.9%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 17% to 11% over the past 5 years.
What does this mean?
Though Mission Marketing Group's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Mission Marketing Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Mission Marketing Group 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 TMMG’s future growth? Take a look at our free research report of analyst consensus for TMMG’s outlook.
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Financial Health: Are TMMG’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.