Want To Invest In EVN AG (VIE:EVN)? Here’s How It Performed Lately
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Assessing EVN AG’s (VIE:EVN) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how EVN is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its electric utilities industry peers.
View our latest analysis for EVN
Commentary On EVN’s Past Performance
EVN’s trailing twelve-month earnings (from 30 September 2018) of €255m has increased by 1.4% 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 EVN is growing has slowed down. What could be happening here? Well, let’s examine what’s going on with margins and if the whole industry is feeling the heat.
In terms of returns from investment, EVN has fallen short of achieving a 20% return on equity (ROE), recording 6.8% instead. Furthermore, its return on assets (ROA) of 3.3% is below the AT Electric Utilities industry of 4.8%, indicating EVN’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for EVN’s debt level, has declined over the past 3 years from 3.2% to 3.1%.
What does this mean?
EVN’s track record can be a valuable insight into its earnings performance, but it certainly 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 EVN to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for EVN’s future growth? Take a look at our free research report of analyst consensus for EVN’s outlook.
Financial Health: Are EVN’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 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. On rare occasion, data errors may occur. Thank you for reading.
