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Assessing ATOSS Software AG’s (XTRA:AOF) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess AOF’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. View our latest analysis for ATOSS Software
Did AOF’s recent earnings growth beat the long-term trend and the industry?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This enables me to examine different stocks on a similar basis, using new information. For ATOSS Software, its most recent trailing-twelve-month earnings is €9.34M, which, against last year’s level, Given that these figures may be somewhat short-term, I’ve estimated an annualized five-year figure for ATOSS Software’s earnings, which stands at €6.61M This shows that, on average, ATOSS Software has been able to grow its earnings over the last couple of years.
How has it been able to do this? Let’s see whether it is solely because of industry tailwinds, or if ATOSS Software has seen some company-specific growth. In the past few years, ATOSS Software grew its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Scanning growth from a sector-level, the DE it industry has been growing, albeit, at a muted single-digit rate of 7.90% in the previous twelve months, and a substantial 12.82% over the past five years. This suggests that whatever uplift the industry is benefiting from, ATOSS Software has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While ATOSS Software has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research ATOSS Software to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for AOF’s future growth? Take a look at our free research report of analyst consensus for AOF’s outlook.
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Financial Health: Is AOF’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.
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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 2017. 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.