Want To Invest In 1&1 Drillisch AG (FRA:DRI)? Here’s How It Performed Lately
For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at 1&1 Drillisch AG’s (DB:DRI) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. See our latest analysis for 1&1 Drillisch
How DRI fared against its long-term earnings performance and its industry
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to assess different companies in a uniform manner using the latest information. For 1&1 Drillisch, its latest earnings (trailing twelve month) is €318.91M, which compared to last year’s level, has increased by 35.98%. Given that these figures may be fairly short-term, I’ve created an annualized five-year value for DRI’s net income, which stands at €278.42M This means generally, 1&1 Drillisch has been able to increasingly improve its net income over the past few years as well.
How has it been able to do this? Let’s take a look at whether it is only owing to an industry uplift, or if 1&1 Drillisch has seen some company-specific growth. Over the last few years, 1&1 Drillisch increased its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Looking at growth from a sector-level, the DE wireless telecom industry has been growing, albeit, at a unexciting single-digit rate of 5.14% over the prior twelve months, and a flatter -1.27% over the past half a decade. This means that, in the recent industry expansion, 1&1 Drillisch is able to leverage this to its advantage.
What does this mean?
1&1 Drillisch’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While 1&1 Drillisch has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research 1&1 Drillisch to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for DRI’s future growth? Take a look at our free research report of analyst consensus for DRI’s outlook.
Financial Health: Is DRI’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 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
