Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
After reading GSW Immobilien AG's (FRA:GIB) most recent earnings announcement (31 December 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.
See our latest analysis for GSW Immobilien
Commentary On GIB's Past Performance
GIB's trailing twelve-month earnings (from 31 December 2018) of €622m has declined by -17% 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 23%, indicating the rate at which GIB is growing has slowed down. Why could this be happening? Well, let's look at what's transpiring with margins and if the entire industry is feeling the heat.
In terms of returns from investment, GSW Immobilien has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. However, its return on assets (ROA) of 7.9% exceeds the DE Real Estate industry of 5.6%, indicating GSW Immobilien has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for GSW Immobilien’s debt level, has declined over the past 3 years from 3.4% to 2.2%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors affecting its business. I recommend you continue to research GSW Immobilien to get a better picture of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for GIB’s future growth? Take a look at our free research report of analyst consensus for GIB’s outlook.
-
Financial Health: Are GIB’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 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.