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Examining Delignit AG's (ETR:DLX) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess DLX's latest performance announced on 31 December 2018 and weigh these figures against its longer term trend and industry movements.
View our latest analysis for Delignit
How DLX fared against its long-term earnings performance and its industry
DLX's trailing twelve-month earnings (from 31 December 2018) of €2.6m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 12%, indicating the rate at which DLX is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is only owing to an industry uplift, or if Delignit has seen some company-specific growth.
In terms of returns from investment, Delignit has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 7.2% exceeds the DE Forestry industry of 6.1%, indicating Delignit has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Delignit’s debt level, has increased over the past 3 years from 6.2% to 16%.
What does this mean?
Though Delignit's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Delignit gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Delignit 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 DLX’s future growth? Take a look at our free research report of analyst consensus for DLX’s outlook.
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Financial Health: Are DLX’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 2018. 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.