BHB Brauholding Bayern-Mitte AG's (FRA:B9B) Earnings Dropped -13%, How Did It Fare Against The Industry?

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Measuring BHB Brauholding Bayern-Mitte AG's (DB:B9B) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess B9B's recent performance announced on 30 June 2019 and compare these figures to its historical trend and industry movements.

View our latest analysis for BHB Brauholding Bayern-Mitte

How Well Did B9B Perform?

B9B's trailing twelve-month earnings (from 30 June 2019) of €229k has declined by -13% compared to the previous year.

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 13%, indicating the rate at which B9B is growing has slowed down. Why could this be happening? Well, let's look at what's transpiring with margins and whether the whole industry is facing the same headwind.

DB:B9B Income Statement, December 14th 2019
DB:B9B Income Statement, December 14th 2019

In terms of returns from investment, BHB Brauholding Bayern-Mitte has fallen short of achieving a 20% return on equity (ROE), recording 2.1% instead. Furthermore, its return on assets (ROA) of 1.3% is below the DE Beverage industry of 3.6%, indicating BHB Brauholding Bayern-Mitte's are utilized less efficiently. However, its return on capital (ROC), which also accounts for BHB Brauholding Bayern-Mitte’s debt level, has increased over the past 3 years from 3.5% to 3.5%.

What does this mean?

BHB Brauholding Bayern-Mitte's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. You should continue to research BHB Brauholding Bayern-Mitte to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for B9B’s future growth? Take a look at our free research report of analyst consensus for B9B’s outlook.

  2. Financial Health: Are B9B’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 30 June 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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