Want to participate in a research study? Help shape the future of investing tools and earn a $60 gift card!
Measuring Brenntag AG's (ETR:BNR) track record of past performance is a useful exercise for investors. It enables 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 BNR's recent performance announced on 31 December 2018 and weigh these figures against its long-term trend and industry movements.
Commentary On BNR's Past Performance
BNR's trailing twelve-month earnings (from 31 December 2018) of €461m has jumped 28% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.4%, indicating the rate at which BNR is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is merely attributable to industry tailwinds, or if Brenntag has experienced some company-specific growth.
In terms of returns from investment, Brenntag has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 7.0% exceeds the DE Trade Distributors industry of 3.9%, indicating Brenntag has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Brenntag’s debt level, has declined over the past 3 years from 12% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Brenntag gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Brenntag to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for BNR’s future growth? Take a look at our free research report of analyst consensus for BNR’s outlook.
- Financial Health: Are BNR’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 2018. This may not be consistent with full year annual report figures.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.