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Assessing Per Aarsleff Holding A/S's (CPH:PAAL 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 PAAL B's latest performance announced on 31 March 2019 and evaluate these figures to its historical trend and industry movements.
View our latest analysis for Per Aarsleff Holding
Were PAAL B's earnings stronger than its past performances and the industry?
PAAL B's trailing twelve-month earnings (from 31 March 2019) of ø357m has jumped 12% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 4.0%, indicating the rate at which PAAL B is growing has accelerated. What's enabled this growth? Let's take a look at if it is solely a result of industry tailwinds, or if Per Aarsleff Holding has experienced some company-specific growth.
In terms of returns from investment, Per Aarsleff Holding has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 4.9% exceeds the DK Construction industry of 4.4%, indicating Per Aarsleff Holding has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Per Aarsleff Holding’s debt level, has declined over the past 3 years from 16% to 14%.
What does this mean?
Per Aarsleff Holding'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? You should continue to research Per Aarsleff Holding 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 PAAL B’s future growth? Take a look at our free research report of analyst consensus for PAAL B’s outlook.
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Financial Health: Are PAAL 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 31 March 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.