Examining how Aalberts Industries NV (AMS:AALB) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Aalberts Industries is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its machinery industry peers.
Did AALB’s recent earnings growth beat the long-term trend and the industry?
AALB’s trailing twelve-month earnings (from 30 June 2018) of €217m has jumped 13% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which AALB is growing has accelerated. What’s the driver of this growth? Let’s see if it is merely due to industry tailwinds, or if Aalberts Industries has experienced some company-specific growth.
In terms of returns from investment, Aalberts Industries has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 7.5% exceeds the NL Machinery industry of 6.0%, indicating Aalberts Industries has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Aalberts Industries’s debt level, has increased over the past 3 years from 11% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 67% to 51% over the past 5 years.
What does this mean?
Aalberts Industries’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Aalberts Industries gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Aalberts Industries to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for AALB’s future growth? Take a look at our free research report of analyst consensus for AALB’s outlook.
- Financial Health: Are AALB’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 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at email@example.com.