Today I will examine Bobst Group SA's (SWX:BOBNN) latest earnings update (31 December 2019) and compare these figures against its performance over the past couple of years, in addition to how the rest of BOBNN's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.

View our latest analysis for Bobst Group

How BOBNN fared against its long-term earnings performance and its industry

BOBNN's trailing twelve-month earnings (from 31 December 2019) of CHF68m has increased by 7.2% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.7%, indicating the rate at which BOBNN is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is only owing to industry tailwinds, or if Bobst Group has seen some company-specific growth.

In terms of returns from investment, Bobst Group has fallen short of achieving a 20% return on equity (ROE), recording 9.4% instead. Furthermore, its return on assets (ROA) of 4.7% is below the CH Machinery industry of 5.0%, indicating Bobst Group's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Bobst Group’s debt level, has declined over the past 3 years from 12% to 9.8%.

What does this mean?

Though Bobst Group's past data is helpful, it is only one aspect of my investment thesis. While Bobst Group has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Bobst Group to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for BOBNN’s future growth? Take a look at our free research report of analyst consensus for BOBNN’s outlook.

2. Financial Health: Are BOBNN’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.

3. 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 2019. This may not be consistent with full year annual report figures.

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.

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