Does Flügger group A/S's (CPH:FLUG B) Past Performance Indicate A Stronger Future?

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Flügger group A/S's (CPSE:FLUG B) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.

See our latest analysis for Flügger group

Did FLUG B beat its long-term earnings growth trend and its industry?

FLUG B's trailing twelve-month earnings (from 31 July 2019) of ø31m has jumped 41% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -19%, indicating the rate at which FLUG B is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is only attributable to an industry uplift, or if Flügger group has experienced some company-specific growth.

CPSE:FLUG B Income Statement, October 15th 2019
CPSE:FLUG B Income Statement, October 15th 2019

In terms of returns from investment, Flügger group has fallen short of achieving a 20% return on equity (ROE), recording 3.9% instead. Furthermore, its return on assets (ROA) of 2.2% is below the DK Chemicals industry of 5.1%, indicating Flügger group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Flügger group’s debt level, has increased over the past 3 years from 2.3% to 5.2%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 1.1% to 0.2% over the past 5 years.

What does this mean?

Though Flügger group's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn't always indicative of a continued optimistic outlook. You should continue to research Flügger group to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for FLUG B’s future growth? Take a look at our free research report of analyst consensus for FLUG B’s outlook.

  2. Financial Health: Are FLUG 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.

  3. 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 July 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.