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Examining Addtech AB (publ.)'s (STO:ADDT B) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ADDT B's latest performance announced on 31 March 2019 and weigh these figures against its longer term trend and industry movements.
See our latest analysis for Addtech AB (publ.)
Could ADDT B beat the long-term trend and outperform its industry?
ADDT B's trailing twelve-month earnings (from 31 March 2019) of kr660m has jumped 28% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 14%, indicating the rate at which ADDT B is growing has accelerated. What's the driver of this growth? Let's take a look at if it is only because of an industry uplift, or if Addtech AB (publ.) has seen some company-specific growth.
In terms of returns from investment, Addtech AB (publ.) has invested its equity funds well leading to a 27% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 10% exceeds the SE Trade Distributors industry of 7.6%, indicating Addtech AB (publ.) has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Addtech AB (publ.)’s debt level, has increased over the past 3 years from 22% to 24%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Addtech AB (publ.) has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Addtech AB (publ.) to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for ADDT B’s future growth? Take a look at our free research report of analyst consensus for ADDT B’s outlook.
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Financial Health: Are ADDT B’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 March 2019. 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.