Has VERBUND AG (VIE:VER) Improved Earnings Growth In Recent Times?
Measuring VERBUND AG's (VIE:VER) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess VER's recent performance announced on 30 June 2019 and compare these figures to its historical trend and industry movements.
View our latest analysis for VERBUND
How Did VER's Recent Performance Stack Up Against Its Past?
VER's trailing twelve-month earnings (from 30 June 2019) of €544m has jumped 45% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 23%, indicating the rate at which VER is growing has accelerated. What's enabled this growth? Let's see if it is only a result of an industry uplift, or if VERBUND has seen some company-specific growth.
In terms of returns from investment, VERBUND has fallen short of achieving a 20% return on equity (ROE), recording 9.8% instead. However, its return on assets (ROA) of 5.3% exceeds the AT Electric Utilities industry of 4.5%, indicating VERBUND has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for VERBUND’s debt level, has increased over the past 3 years from 4.9% to 6.9%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 62% to 36% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as VERBUND gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research VERBUND to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for VER’s future growth? Take a look at our free research report of analyst consensus for VER’s outlook.
Financial Health: Are VER’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.
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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.
