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When Schwälbchen Molkerei Jakob Berz AG (DB:SMB) announced its most recent earnings (31 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Schwälbchen Molkerei Jakob Berz has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see SMB has performed.
View our latest analysis for Schwälbchen Molkerei Jakob Berz
How SMB fared against its long-term earnings performance and its industry
SMB's trailing twelve-month earnings (from 31 December 2018) of €3.1m has jumped 29% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which SMB is growing has accelerated. What's enabled this growth? Let's see whether it is only owing to an industry uplift, or if Schwälbchen Molkerei Jakob Berz has experienced some company-specific growth.
In terms of returns from investment, Schwälbchen Molkerei Jakob Berz has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 5.2% exceeds the DE Food industry of 5.1%, indicating Schwälbchen Molkerei Jakob Berz has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Schwälbchen Molkerei Jakob Berz’s debt level, has increased over the past 3 years from 6.0% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 54% to 24% over the past 5 years.
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 Schwälbchen Molkerei Jakob Berz 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 SMB’s future growth? Take a look at our free research report of analyst consensus for SMB’s outlook.
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Financial Health: Are SMB’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.