Was National Express Group PLC's (LON:NEX) Earnings Growth Better Than The Industry's?
Was National Express Group PLC's (LON:NEX) Earnings Growth Better Than The Industry's? In this article, I will take a look at National Express Group PLC's (LON:NEX) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, along with how the rest of NEX's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. NEX's trailing twelve-month earnings (from 31 December 2018) of UK£136m has increased by 8.5% compared to the previous year. However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 19%, indicating the rate at which NEX is growing has slowed down. Furthermore, its return on assets (ROA) of 5.1% is below the GB Transportation industry of 5.4%, indicating National Express Group's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for National Express Group’s debt level, has declined over the past 3 years from 9.3% to 9.1%.