Analyzing Hexagon AB (publ)'s (OM:HEXA B) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess HEXA B's recent performance announced on 30 September 2019 and compare these figures to its long-term trend and industry movements.
How Did HEXA B's Recent Performance Stack Up Against Its Past?
HEXA B's trailing twelve-month earnings (from 30 September 2019) of €720m has declined by -7.0% 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 13%, indicating the rate at which HEXA B is growing has slowed down. Why is this? Well, let's look at what's occurring with margins and if the entire industry is experiencing the hit as well.
In terms of returns from investment, Hexagon has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 7.1% is below the SE Electronic industry of 7.7%, indicating Hexagon's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Hexagon’s debt level, has declined over the past 3 years from 12% to 11%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors impacting its business. I suggest you continue to research Hexagon to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for HEXA B’s future growth? Take a look at our free research report of analyst consensus for HEXA B’s outlook.
- Financial Health: Are HEXA B’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.
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.
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