In This Article:
For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Royal Unibrew A/S (CPH:RBREW) useful as an attempt to give more color around how Royal Unibrew is currently performing.
See our latest analysis for Royal Unibrew
Did RBREW beat its long-term earnings growth trend and its industry?
RBREW’s trailing twelve-month earnings (from 30 June 2018) of ø942m has jumped 16% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 13%, indicating the rate at which RBREW is growing has accelerated. What’s the driver of this growth? Let’s take a look at if it is only owing to industry tailwinds, or if Royal Unibrew has experienced some company-specific growth.
In terms of returns from investment, Royal Unibrew has invested its equity funds well leading to a 37% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 13% exceeds the DK Beverage industry of 5.0%, indicating Royal Unibrew has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Royal Unibrew’s debt level, has increased over the past 3 years from 19% to 26%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Royal Unibrew has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Royal Unibrew 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 RBREW’s future growth? Take a look at our free research report of analyst consensus for RBREW’s outlook.
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Financial Health: Are RBREW’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 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.