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When ATOSS Software AG (ETR:AOF) released its most recent earnings update (31 March 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 ATOSS Software 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 AOF has performed.
View our latest analysis for ATOSS Software
How Well Did AOF Perform?
AOF's trailing twelve-month earnings (from 31 March 2019) of €12m has jumped 23% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 14%, indicating the rate at which AOF is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is solely attributable to an industry uplift, or if ATOSS Software has seen some company-specific growth.
In terms of returns from investment, ATOSS Software has invested its equity funds well leading to a 42% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 24% exceeds the DE Software industry of 4.9%, indicating ATOSS Software has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for ATOSS Software’s debt level, has increased over the past 3 years from 50% to 53%.
What does this mean?
ATOSS Software's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as ATOSS Software gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research ATOSS Software 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 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: Are 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 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.