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How Does As Commercial Industrial Company of Computers and Toys S.A.'s (ATH:ASCO) Earnings Growth Stack Up Against Industry Performance?

Simply Wall St

For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine As Commercial Industrial Company of Computers and Toys S.A.'s (ATH:ASCO) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.

View our latest analysis for As Commercial Industrial Company of Computers and Toys

How ASCO fared against its long-term earnings performance and its industry

ASCO's trailing twelve-month earnings (from 31 December 2018) of €3.2m has increased by 7.2% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 26%, indicating the rate at which ASCO is growing has slowed down. What could be happening here? Well, let's look at what's transpiring with margins and whether the whole industry is experiencing the hit as well.

ATSE:ASCO Income Statement, September 22nd 2019

In terms of returns from investment, As Commercial Industrial Company of Computers and Toys has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 8.7% exceeds the GR Leisure industry of 8.0%, indicating As Commercial Industrial Company of Computers and Toys has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for As Commercial Industrial Company of Computers and Toys’s debt level, has increased over the past 3 years from 11% to 15%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 15% to 0.3% over the past 5 years.

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 As Commercial Industrial Company of Computers and Toys gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research As Commercial Industrial Company of Computers and Toys to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for ASCO’s future growth? Take a look at our free research report of analyst consensus for ASCO’s outlook.
  2. Financial Health: Are ASCO’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 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 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. Thank you for reading.