Examining Kambi Group plc's (OM:KAMBI) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess KAMBI's latest performance announced on 31 December 2019 and compare these figures to its longer term trend and industry movements.
How KAMBI fared against its long-term earnings performance and its industry
KAMBI's trailing twelve-month earnings (from 31 December 2019) of €10m has increased by 6.4% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 22%, indicating the rate at which KAMBI is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s occurring with margins and whether the whole industry is experiencing the hit as well.
In terms of returns from investment, Kambi Group has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 11% exceeds the SE Hospitality industry of 8.4%, indicating Kambi Group has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Kambi Group’s debt level, has declined over the past 3 years from 19% to 17%.
What does this mean?
Though Kambi Group's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Kambi Group to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for KAMBI’s future growth? Take a look at our free research report of analyst consensus for KAMBI’s outlook.
- Financial Health: Are KAMBI’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 email@example.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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