Yahoo Finance Does Nabaltec AG’s (ETR:NTG) Past Performance Indicate A Stronger Future?
Assessing Nabaltec AG’s (ETR:NTG) 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 Nabaltec is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its chemicals industry peers. Check out our latest analysis for Nabaltec
How Did NTG’s Recent Performance Stack Up Against Its Past?
NTG’s trailing twelve-month earnings (from 31 March 2018) of €12.10m has more than doubled from €5.34m in the prior year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 20.95%, indicating the rate at which NTG is growing has accelerated. What’s enabled this growth? Let’s see whether it is only attributable to an industry uplift, or if Nabaltec has seen some company-specific growth.
In the past couple of years, Nabaltec increased its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Viewing growth from a sector-level, the DE chemicals industry has been growing its average earnings by double-digit 13.23% in the previous twelve months, and a less exciting 6.32% over the past five. This means whatever uplift the industry is profiting from, Nabaltec is able to leverage this to its advantage.
In terms of returns from investment, Nabaltec has not invested its equity funds well, leading to a 13.99% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 6.60% is below the DE Chemicals industry of 6.62%, indicating Nabaltec’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Nabaltec’s debt level, has declined over the past 3 years from 10.60% to 8.42%.
What does this mean?
While past data is useful, it 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? You should continue to research Nabaltec to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for NTG’s future growth? Take a look at our free research report of analyst consensus for NTG’s outlook.
Financial Health: Is NTG’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 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
