Measuring Sartorius Stedim Biotech S.A.'s (ENXTPA:DIM) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess DIM's recent performance announced on 30 September 2019 and compare these figures to its historical trend and industry movements.
Did DIM's recent earnings growth beat the long-term trend and the industry?
DIM's trailing twelve-month earnings (from 30 September 2019) of €247m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 21%, indicating the rate at which DIM is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is only a result of an industry uplift, or if Sartorius Stedim Biotech has seen some company-specific growth.
In terms of returns from investment, Sartorius Stedim Biotech has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the FR Life Sciences industry of 6.8%, indicating Sartorius Stedim Biotech has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Sartorius Stedim Biotech’s debt level, has declined over the past 3 years from 26% to 25%.
What does this mean?
Sartorius Stedim Biotech's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Sartorius Stedim Biotech 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 Sartorius Stedim Biotech to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for DIM’s future growth? Take a look at our free research report of analyst consensus for DIM’s outlook.
- Financial Health: Are DIM’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 September 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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