Assessing AB Electrolux (publ)'s (OM:ELUX B) 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 ELUX B's latest performance announced on 30 September 2019 and evaluate these figures to its historical trend and industry movements.
How Did ELUX B's Recent Performance Stack Up Against Its Past?
ELUX B's trailing twelve-month earnings (from 30 September 2019) of kr3.5b has declined by -17% 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 17%, indicating the rate at which ELUX B is growing has slowed down. Why could this be happening? Well, let's look at what's transpiring with margins and if the entire industry is experiencing the hit as well.
In terms of returns from investment, AB Electrolux has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. Furthermore, its return on assets (ROA) of 3.6% is below the SE Consumer Durables industry of 5.9%, indicating AB Electrolux's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for AB Electrolux’s debt level, has declined over the past 3 years from 18% to 9.2%.
What does this mean?
Though AB Electrolux's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have unpredictable earnings, can have many factors impacting its business. I suggest you continue to research AB Electrolux to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ELUX B’s future growth? Take a look at our free research report of analyst consensus for ELUX B’s outlook.
- Financial Health: Are ELUX 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.
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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