Interested In Andritz AG (VIE:ANDR)? Here’s How It Performed Recently

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Understanding Andritz AG’s (VIE:ANDR) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Andritz is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period.

Check out our latest analysis for Andritz

Commentary On ANDR’s Past Performance

ANDR’s trailing twelve-month earnings (from 31 March 2019) of €212m has declined by -13% 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 8.4%, indicating the rate at which ANDR is growing has slowed down. Why is this? Well, let’s look at what’s occurring with margins and if the whole industry is feeling the heat.

WBAG:ANDR Income Statement, June 18th 2019
WBAG:ANDR Income Statement, June 18th 2019

In terms of returns from investment, Andritz has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. Furthermore, its return on assets (ROA) of 3.3% is below the AT Machinery industry of 5.7%, indicating Andritz’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Andritz’s debt level, has declined over the past 3 years from 17% to 10.0%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 72% to 129% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Usually companies that endure a prolonged period of reduction in earnings are going through some sort of reinvestment phase in order to keep up with the recent industry growth and disruption. You should continue to research Andritz to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for ANDR’s future growth? Take a look at our free research report of analyst consensus for ANDR’s outlook.
  2. Financial Health: Are ANDR’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.
  3. 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 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.