Measuring Bucher Industries AG's (SWX:BUCN) 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 BUCN's recent performance announced on 30 June 2019 and weigh these figures against its long-term trend and industry movements.
How Well Did BUCN Perform?
BUCN's trailing twelve-month earnings (from 30 June 2019) of CHF216m has increased by 8.4% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 4.1%, indicating the rate at which BUCN is growing has accelerated. What's the driver of this growth? Let's see whether it is only attributable to an industry uplift, or if Bucher Industries has seen some company-specific growth.
In terms of returns from investment, Bucher Industries has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 8.7% exceeds the CH Machinery industry of 5.3%, indicating Bucher Industries has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bucher Industries’s debt level, has increased over the past 3 years from 12% to 17%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 44% to 25% over the past 5 years.
What does this mean?
Bucher Industries's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Bucher Industries 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 Bucher Industries to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for BUCN’s future growth? Take a look at our free research report of analyst consensus for BUCN’s outlook.
- Financial Health: Are BUCN’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 30 June 2019. 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.