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When Palfinger AG (VIE:PAL) announced its most recent earnings (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Palfinger has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see PAL has performed.
How Did PAL’s Recent Performance Stack Up Against Its Past?
PAL’s trailing twelve-month earnings (from 31 March 2019) of €61m has jumped 20% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 1.9%, indicating the rate at which PAL is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is solely owing to an industry uplift, or if Palfinger has seen some company-specific growth.
In terms of returns from investment, Palfinger has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. Furthermore, its return on assets (ROA) of 4.8% is below the AT Machinery industry of 5.7%, indicating Palfinger’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Palfinger’s debt level, has increased over the past 3 years from 11% to 11%.
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 Palfinger gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Palfinger to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for PAL’s future growth? Take a look at our free research report of analyst consensus for PAL’s outlook.
- Financial Health: Are PAL’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 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.