Examining how Eckert & Ziegler Strahlen- und Medizintechnik AG (XTRA:EUZ) 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 Eckert & Ziegler Strahlen- und Medizintechnik is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its medical equipment industry peers.
Could EUZ beat the long-term trend and outperform its industry?
EUZ's trailing twelve-month earnings (from 30 September 2019) of €22m has jumped 41% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 18%, indicating the rate at which EUZ is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is solely due to an industry uplift, or if Eckert & Ziegler Strahlen- und Medizintechnik has experienced some company-specific growth.
In terms of returns from investment, Eckert & Ziegler Strahlen- und Medizintechnik has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 8.8% exceeds the DE Medical Equipment industry of 6.4%, indicating Eckert & Ziegler Strahlen- und Medizintechnik has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Eckert & Ziegler Strahlen- und Medizintechnik’s debt level, has increased over the past 3 years from 4.8% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 22% to 13% over the past 5 years.
What does this mean?
Eckert & Ziegler Strahlen- und Medizintechnik'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 Eckert & Ziegler Strahlen- und Medizintechnik gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Eckert & Ziegler Strahlen- und Medizintechnik to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for EUZ’s future growth? Take a look at our free research report of analyst consensus for EUZ’s outlook.
- Financial Health: Are EUZ’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 September 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 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.
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.