In This Article:
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In this article, I will take a look at Paul Hartmann AG's (FRA:PHH2) 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 PHH2'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.
View our latest analysis for Paul Hartmann
Did PHH2 perform worse than its track record and industry?
PHH2's trailing twelve-month earnings (from 31 December 2018) of €79m has declined by -11% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.0%, indicating the rate at which PHH2 is growing has slowed down. Why could this be happening? Well, let's look at what's occurring with margins and if the entire industry is feeling the heat.
In terms of returns from investment, Paul Hartmann has fallen short of achieving a 20% return on equity (ROE), recording 9.1% instead. Furthermore, its return on assets (ROA) of 5.3% is below the DE Medical Equipment industry of 6.3%, indicating Paul Hartmann's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Paul Hartmann’s debt level, has declined over the past 3 years from 12% to 11%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors affecting its business. You should continue to research Paul Hartmann 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 PHH2’s future growth? Take a look at our free research report of analyst consensus for PHH2’s outlook.
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Financial Health: Are PHH2’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 December 2018. 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.