Was Internationella Engelska Skolan i Sverige Holdings II AB (publ)'s (STO:ENG) Earnings Growth Better Than The Industry's?

Assessing Internationella Engelska Skolan i Sverige Holdings II AB (publ)'s (STO:ENG) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess ENG's latest performance announced on 30 June 2019 and evaluate these figures to its historical trend and industry movements.

View our latest analysis for Internationella Engelska Skolan i Sverige Holdings II

Did ENG beat its long-term earnings growth trend and its industry?

ENG's trailing twelve-month earnings (from 30 June 2019) of kr155m has jumped 33% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.9%, indicating the rate at which ENG is growing has accelerated. What's enabled this growth? Well, let’s take a look at if it is solely owing to industry tailwinds, or if Internationella Engelska Skolan i Sverige Holdings II has seen some company-specific growth.

OM:ENG Income Statement, September 1st 2019
OM:ENG Income Statement, September 1st 2019

In terms of returns from investment, Internationella Engelska Skolan i Sverige Holdings II has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 8.9% exceeds the SE Consumer Services industry of 6.3%, indicating Internationella Engelska Skolan i Sverige Holdings II has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Internationella Engelska Skolan i Sverige Holdings II’s debt level, has declined over the past 3 years from 21% to 15%.

What does this mean?

Though Internationella Engelska Skolan i Sverige Holdings II's past data is helpful, it is only one aspect of my investment thesis. While Internationella Engelska Skolan i Sverige Holdings II 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 Internationella Engelska Skolan i Sverige Holdings II to get a more holistic view of the stock by looking at:

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

  2. Financial Health: Are ENG’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.