Today I will examine NTR Holding A/S's (CPSE:NTR B) latest earnings update (31 December 2019) and compare these figures against its performance over the past couple of years, in addition to how the rest of NTR B's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.

See our latest analysis for NTR Holding

Were NTR B's earnings stronger than its past performances and the industry?

NTR B's trailing twelve-month earnings (from 31 December 2019) of ø6.6m has increased by 6.5% 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 42%, indicating the rate at which NTR B is growing has slowed down. To understand what's happening, let's look at what's occurring with margins and whether the whole industry is feeling the heat.

In terms of returns from investment, NTR Holding has fallen short of achieving a 20% return on equity (ROE), recording 5.1% instead. Furthermore, its return on assets (ROA) of 4.5% is below the DK Electrical industry of 5.6%, indicating NTR Holding's are utilized less efficiently. However, its return on capital (ROC), which also accounts for NTR Holding’s debt level, has increased over the past 3 years from 2.5% to 6.3%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 52% to 9.4% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research NTR Holding to get a better picture of the stock by looking at:

1. Financial Health: Are NTR 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.

2. Valuation: What is NTR B worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NTR B is currently mispriced by the market.

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 December 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 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.

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. Thank you for reading.