Want To Invest In Ströer SE & Co. KGaA (ETR:SAX)? Here's How It Performed Lately
Assessing Ströer SE & Co. KGaA's (XTRA:SAX) 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 Ströer SE KGaA is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its media industry peers.
Check out our latest analysis for Ströer SE KGaA
Did SAX beat its long-term earnings growth trend and its industry?
SAX's trailing twelve-month earnings (from 30 June 2019) of €109m has increased by 3.3% 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 31%, indicating the rate at which SAX is growing has slowed down. What could be happening here? Well, let's look at what's transpiring with margins and whether the rest of the industry is facing the same headwind.
In terms of returns from investment, Ströer SE KGaA has fallen short of achieving a 20% return on equity (ROE), recording 20% instead. Furthermore, its return on assets (ROA) of 4.0% is below the DE Media industry of 4.2%, indicating Ströer SE KGaA's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Ströer SE KGaA’s debt level, has increased over the past 3 years from 6.9% to 7.5%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 127% to 123% over the past 5 years.
What does this mean?
Ströer SE KGaA'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 Ströer SE KGaA to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SAX’s future growth? Take a look at our free research report of analyst consensus for SAX’s outlook.
Financial Health: Are SAX’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.
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.
