In This Article:
Assessing VZ Holding AG’s (SWX:VZN) 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 VZN’s latest performance announced on 31 December 2017 and evaluate these figures to its historical trend and industry movements. Check out our latest analysis for VZ Holding
How Well Did VZN Perform?
I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to analyze many different companies on a similar basis, using new information. For VZ Holding, its latest trailing-twelve-month earnings is CHF86.75M, which, in comparison to last year’s level, has increased by a relatively soft 3.17%. Since these figures may be somewhat short-term, I have determined an annualized five-year value for VZN’s net income, which stands at CHF68.95M This means generally, VZ Holding has been able to increasingly improve its earnings over the last few years as well.
What’s enabled this growth? Let’s take a look at whether it is solely due to an industry uplift, or if VZ Holding has experienced some company-specific growth. The ascend in earnings seems to be driven by a substantial top-line increase outstripping its growth rate of costs. Though this has led to a margin contraction, it has made VZ Holding more profitable. Scanning growth from a sector-level, the CH capital markets industry has been growing its average earnings by double-digit 13.11% over the prior twelve months, and 14.50% over the last five years. This shows that whatever uplift the industry is profiting from, VZ Holding has not been able to realize the gains unlike its industry peers.
What does this mean?
VZ Holding’s track record can be a valuable insight into its earnings performance, but it certainly 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 VZ Holding to get a more holistic view of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for VZN’s future growth? Take a look at our free research report of analyst consensus for VZN’s outlook.
-
Financial Health: Is VZN’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.
-
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 2017. This may not be consistent with full year annual report figures.
To help readers see pass 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.