In This Article:
Analyzing Bergman & Beving AB (publ)'s (STO:BERG B) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess BERG B's recent performance announced on 30 June 2019 and compare these figures to its long-term trend and industry movements.
Check out our latest analysis for Bergman & Beving
Did BERG B perform better than its track record and industry?
BERG B's trailing twelve-month earnings (from 30 June 2019) of kr165m has increased by 1.2% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -16%, indicating the rate at which BERG B is growing has accelerated. How has it been able to do this? Let's take a look at whether it is only because of an industry uplift, or if Bergman & Beving has experienced some company-specific growth.
In terms of returns from investment, Bergman & Beving has fallen short of achieving a 20% return on equity (ROE), recording 9.8% instead. Furthermore, its return on assets (ROA) of 3.9% is below the SE Trade Distributors industry of 7.0%, indicating Bergman & Beving's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Bergman & Beving’s debt level, has declined over the past 3 years from 11% to 7.1%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There could be variables that are affecting the industry as a whole, hence the high industry growth rate over the same period of time. You should continue to research Bergman & Beving 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 BERG B’s future growth? Take a look at our free research report of analyst consensus for BERG B’s outlook.
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Financial Health: Are BERG 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 30 June 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.