Want To Invest In MBB SE (ETR:MBB)? Here's How It Performed Lately
Understanding how MBB SE (ETR:MBB) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how MBB is doing by comparing its latest earnings with its long-term trend as well as the performance of its industrials industry peers.
View our latest analysis for MBB
Did MBB's recent earnings growth beat the long-term trend and the industry?
MBB's trailing twelve-month earnings (from 31 March 2019) of €16m has jumped 31% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.2%, indicating the rate at which MBB is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is only due to industry tailwinds, or if MBB has seen some company-specific growth.
In terms of returns from investment, MBB has fallen short of achieving a 20% return on equity (ROE), recording 6.4% instead. Furthermore, its return on assets (ROA) of 2.2% is below the DE Industrials industry of 3.2%, indicating MBB's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for MBB’s debt level, has declined over the past 3 years from 12% to 7.4%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While MBB has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research MBB to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for MBB’s future growth? Take a look at our free research report of analyst consensus for MBB’s outlook.
Financial Health: Are MBB’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 31 March 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.
