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In this article, I will take a look at Interroll Holding AG's (VTX:INRN) most recent earnings update (31 December 2018) and compare these latest figures against its performance over the past few years, along with how the rest of INRN'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.
How Well Did INRN Perform?
INRN's trailing twelve-month earnings (from 31 December 2018) of CHF52m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20%, indicating the rate at which INRN is growing has accelerated. What's the driver of this growth? Let's see if it is solely because of an industry uplift, or if Interroll Holding has experienced some company-specific growth.
In terms of returns from investment, Interroll Holding has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 12% exceeds the CH Machinery industry of 6.7%, indicating Interroll Holding has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Interroll Holding’s debt level, has increased over the past 3 years from 18% to 23%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 0.3% to 0.004% 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 Interroll Holding gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Interroll Holding to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for INRN’s future growth? Take a look at our free research report of analyst consensus for INRN’s outlook.
- Financial Health: Are INRN’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 December 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 firstname.lastname@example.org. 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.