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Investors with a long-term horizong may find it valuable to assess Bertrandt Aktiengesellschaft's (FRA:BDT) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how Bertrandt is currently performing.
Check out our latest analysis for Bertrandt
How Did BDT's Recent Performance Stack Up Against Its Past?
BDT's trailing twelve-month earnings (from 31 March 2019) of €47m has increased by 7.9% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -7.5%, indicating the rate at which BDT is growing has accelerated. What's the driver of this growth? Let's see if it is solely due to industry tailwinds, or if Bertrandt has experienced some company-specific growth.
In terms of returns from investment, Bertrandt has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 6.5% is below the DE Professional Services industry of 6.7%, indicating Bertrandt's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Bertrandt’s debt level, has declined over the past 3 years from 16% to 11%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 0.03% to 54% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Recent positive growth isn't always indicative of a continued optimistic outlook. There may be factors that are influencing the industry as a whole, thus the high industry growth rate over the same time period. I suggest you continue to research Bertrandt 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 BDT’s future growth? Take a look at our free research report of analyst consensus for BDT’s outlook.
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Financial Health: Are BDT’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.