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Does Österreichische Post AG's (VIE:POST) Past Performance Indicate A Weaker Future?

Simply Wall St

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After reading Österreichische Post AG's (VIE:POST) most recent earnings announcement (31 December 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Österreichische Post's performance has been impacted by industry movements. In this article I briefly touch on my key findings.

See our latest analysis for Österreichische Post

Despite a decline, did POST underperform the long-term trend and the industry?

POST's trailing twelve-month earnings (from 31 December 2018) of €144m has declined by -13% compared to the previous year.

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.5%, indicating the rate at which POST is growing has slowed down. Why is this? Well, let's look at what's occurring with margins and if the rest of the industry is facing the same headwind.

WBAG:POST Income Statement, March 27th 2019

In terms of returns from investment, Österreichische Post has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 8.1% exceeds the AT Logistics industry of 4.0%, indicating Österreichische Post has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Österreichische Post’s debt level, has declined over the past 3 years from 22% to 18%.

What does this mean?

Österreichische Post's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I suggest you continue to research Österreichische Post to get a more holistic view of the stock by looking at:

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