In This Article:
Examining Absolent Group AB (publ)'s (OM:ABSO) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ABSO's latest performance announced on 30 June 2019 and weight these figures against its longer term trend and industry movements.
Check out our latest analysis for Absolent Group
How Did ABSO's Recent Performance Stack Up Against Its Past?
ABSO's trailing twelve-month earnings (from 30 June 2019) of kr104m has jumped 25% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 26%, indicating the rate at which ABSO is growing has slowed down. To understand what's happening, let's look at what's going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Absolent Group has invested its equity funds well leading to a 25% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 16% exceeds the SE Building industry of 6.3%, indicating Absolent Group has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Absolent Group’s debt level, has declined over the past 3 years from 38% to 24%.
What does this mean?
Though Absolent Group's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Absolent Group 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 ABSO’s future growth? Take a look at our free research report of analyst consensus for ABSO’s outlook.
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Financial Health: Are ABSO’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.