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For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Plan Optik AG's (ETR:P4O) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.
Check out our latest analysis for Plan Optik
Could P4O beat the long-term trend and outperform its industry?
P4O's trailing twelve-month earnings (from 31 December 2018) of €251k has jumped 42% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 35%, indicating the rate at which P4O is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is merely attributable to an industry uplift, or if Plan Optik has experienced some company-specific growth.
In terms of returns from investment, Plan Optik has fallen short of achieving a 20% return on equity (ROE), recording 3.5% instead. Furthermore, its return on assets (ROA) of 2.9% is below the DE Semiconductor industry of 8.4%, indicating Plan Optik's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Plan Optik’s debt level, has increased over the past 3 years from 1.5% to 4.9%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Plan Optik gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Plan Optik 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 P4O’s future growth? Take a look at our free research report of analyst consensus for P4O’s outlook.
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Financial Health: Are P4O’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.