In This Article:
Examining Biotage AB's (STO:BIOT) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess BIOT's latest performance announced on 30 June 2019 and weight these figures against its longer term trend and industry movements.
View our latest analysis for Biotage
Were BIOT's earnings stronger than its past performances and the industry?
BIOT's trailing twelve-month earnings (from 30 June 2019) of kr173m has increased by 6.8% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 24%, indicating the rate at which BIOT is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s occurring with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Biotage has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the SE Life Sciences industry of 7.5%, indicating Biotage has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Biotage’s debt level, has increased over the past 3 years from 17% to 17%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Biotage 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 Biotage to get a more holistic view of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for BIOT’s future growth? Take a look at our free research report of analyst consensus for BIOT’s outlook.
-
Financial Health: Are BIOT’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.
-
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.