After reading Ottakringer Getränke AG's (VIE:OTS) most recent earnings announcement (31 December 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Ottakringer Getränke's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
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View our latest analysis for Ottakringer Getränke
Commentary On OTS's Past Performance
OTS's trailing twelve-month earnings (from 31 December 2018) of €8.9m has declined by -16% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 5.6%, indicating the rate at which OTS is growing has slowed down. What could be happening here? Let's examine what's transpiring with margins and if the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Ottakringer Getränke has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 4.5% is below the AT Beverage industry of 5.5%, indicating Ottakringer Getränke's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Ottakringer Getränke’s debt level, has increased over the past 3 years from 8.5% to 12%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. You should continue to research Ottakringer Getränke 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 OTS’s future growth? Take a look at our free research report of analyst consensus for OTS’s outlook.
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Financial Health: Are OTS’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.