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Was Internationella Engelska Skolan i Sverige Holdings II AB (publ)'s (STO:ENG) Earnings Growth Better Than The Industry's?

Simply Wall St

Assessing Internationella Engelska Skolan i Sverige Holdings II AB (publ)'s (STO:ENG) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess ENG's latest performance announced on 30 June 2019 and evaluate these figures to its historical trend and industry movements.

View our latest analysis for Internationella Engelska Skolan i Sverige Holdings II

Did ENG beat its long-term earnings growth trend and its industry?

ENG's trailing twelve-month earnings (from 30 June 2019) of kr155m has jumped 33% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.9%, indicating the rate at which ENG is growing has accelerated. What's enabled this growth? Well, let’s take a look at if it is solely owing to industry tailwinds, or if Internationella Engelska Skolan i Sverige Holdings II has seen some company-specific growth.

OM:ENG Income Statement, September 1st 2019

In terms of returns from investment, Internationella Engelska Skolan i Sverige Holdings II has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 8.9% exceeds the SE Consumer Services industry of 6.3%, indicating Internationella Engelska Skolan i Sverige Holdings II has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Internationella Engelska Skolan i Sverige Holdings II’s debt level, has declined over the past 3 years from 21% to 15%.

What does this mean?

Though Internationella Engelska Skolan i Sverige Holdings II's past data is helpful, it is only one aspect of my investment thesis. While Internationella Engelska Skolan i Sverige Holdings II has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Internationella Engelska Skolan i Sverige Holdings II to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for ENG’s future growth? Take a look at our free research report of analyst consensus for ENG’s outlook.
  2. Financial Health: Are ENG’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 30 June 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.

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.