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When Beijer Ref AB (publ) (OM:BEIJ B) announced its most recent earnings (30 June 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Beijer Ref has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see BEIJ B has performed.
Check out our latest analysis for Beijer Ref
How Well Did BEIJ B Perform?
BEIJ B's trailing twelve-month earnings (from 30 June 2019) of kr830m has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22%, indicating the rate at which BEIJ B is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is solely a result of an industry uplift, or if Beijer Ref has seen some company-specific growth.
In terms of returns from investment, Beijer Ref has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 7.5% exceeds the SE Trade Distributors industry of 6.8%, indicating Beijer Ref has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Beijer Ref’s debt level, has increased over the past 3 years from 13% to 15%.
What does this mean?
Beijer Ref's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. 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 Beijer Ref to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for BEIJ B’s future growth? Take a look at our free research report of analyst consensus for BEIJ B’s outlook.
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Financial Health: Are BEIJ 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.
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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 30 June 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.