Should Josef Manner & Comp. AG's (VIE:MAN) Recent Earnings Decline Worry You?
After reading Josef Manner & Comp. AG's (WBAG:MAN) latest earnings update (31 December 2019), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether MAN has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways.
See our latest analysis for Josef Manner & Comp
Was MAN's recent earnings decline worse than the long-term trend and the industry?
MAN's trailing twelve-month earnings (from 31 December 2019) of €5.2m has declined by -8.3% 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 29%, indicating the rate at which MAN is growing has slowed down. Why is this? Well, let's look at what's going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Josef Manner & Comp has fallen short of achieving a 20% return on equity (ROE), recording 9.2% instead. Furthermore, its return on assets (ROA) of 4.1% is below the AT Food industry of 4.7%, indicating Josef Manner & Comp's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Josef Manner & Comp’s debt level, has increased over the past 3 years from 0.4% to 7.8%.
What does this mean?
Josef Manner & Comp'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 affecting its business. I suggest you continue to research Josef Manner & Comp to get a better picture of the stock by looking at:
Financial Health: Are MAN’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 31 December 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 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.
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