After reading Kulmbacher Brauerei Aktien-Gesellschaft’s (MUN:KUL) most recent earnings announcement (30 June 2017), 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. Check out our latest analysis for Kulmbacher Brauerei Aktien-Gesellschaft
Were KUL’s earnings stronger than its past performances and the industry?
I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to analyze various companies on a more comparable basis, using new information. For Kulmbacher Brauerei Aktien-Gesellschaft, its most recent bottom-line (trailing twelve month) is €7.80M, which compared to the previous year’s figure, has jumped up by 30.68%. Given that these figures may be relatively myopic, I’ve created an annualized five-year figure for KUL’s earnings, which stands at €3.90M This means that, generally, Kulmbacher Brauerei Aktien-Gesellschaft has been able to steadily grow its earnings over the past few years as well.
What’s the driver of this growth? Let’s see if it is solely because of industry tailwinds, or if Kulmbacher Brauerei Aktien-Gesellschaft has seen some company-specific growth. Over the last few years, Kulmbacher Brauerei Aktien-Gesellschaft grew its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Looking at growth from a sector-level, the DE beverage industry has been growing its average earnings by double-digit 17.03% over the past year, and a less exciting 5.16% over the past five. This shows that whatever uplift the industry is deriving benefit from, Kulmbacher Brauerei Aktien-Gesellschaft is capable of amplifying this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Kulmbacher Brauerei Aktien-Gesellschaft to get a better picture of the stock by looking at: