Understanding how ASR Nederland N.V. (ENXTAM:ASRNL) 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 ASR Nederland is doing by comparing its latest earnings with its long-term trend as well as the performance of its insurance industry peers.
Did ASRNL perform better than its track record and industry?
ASRNL’s trailing twelve-month earnings (from 30 June 2019) of €833m has declined by -0.8% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 15%, indicating the rate at which ASRNL is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s transpiring with margins and if the entire industry is facing the same headwind.
In terms of returns from investment, ASR Nederland has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 1.5% exceeds the NL Insurance industry of 1.4%, indicating ASR Nederland has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for ASR Nederland’s debt level, has increased over the past 3 years from 1.9% to 2.0%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors influencing its business. I recommend you continue to research ASR Nederland to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ASRNL’s future growth? Take a look at our free research report of analyst consensus for ASRNL’s outlook.
- Financial Health: Are ASRNL’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 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.