Has The Cooper Companies, Inc. (NYSE:COO) Improved Earnings Growth In Recent Times?
When The Cooper Companies, Inc. (NYSE:COO) announced its most recent earnings (31 January 2020), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Cooper Companies performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see COO has performed.
See our latest analysis for Cooper Companies
Commentary On COO's Past Performance
COO's trailing twelve-month earnings (from 31 January 2020) of US$454m has jumped 24% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 13%, indicating the rate at which COO is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is solely due to an industry uplift, or if Cooper Companies has experienced some company-specific growth.
In terms of returns from investment, Cooper Companies has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 7.9% exceeds the US Medical Equipment industry of 6.8%, indicating Cooper Companies has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Cooper Companies’s debt level, has declined over the past 3 years from 10% to 10.0%.
What does this mean?
Though Cooper Companies's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Cooper Companies gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Cooper Companies to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for COO’s future growth? Take a look at our free research report of analyst consensus for COO’s outlook.
Financial Health: Are COO’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 January 2020. 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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