Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In this article, I will take a look at BioDue S.p.A.’s (BIT:BIO2) 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 BIO2’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 Did BIO2’s Recent Performance Stack Up Against Its Past?
BIO2’s trailing twelve-month earnings (from 31 December 2018) of €4.0m has declined by -3.3% 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 23%, indicating the rate at which BIO2 is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and whether the rest of the industry is experiencing the hit as well.
In terms of returns from investment, BioDue has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 8.6% exceeds the IT Personal Products industry of 7.8%, indicating BioDue has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for BioDue’s debt level, has declined over the past 3 years from 20% to 15%.
What does this mean?
BioDue’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors impacting its business. I recommend you continue to research BioDue to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for BIO2’s future growth? Take a look at our free research report of analyst consensus for BIO2’s outlook.
- Financial Health: Are BIO2’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.