Analyzing Schaffner Holding AG’s (VTX:SAHN) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess SAHN’s recent performance announced on 30 September 2018 and compare these figures to its long-term trend and industry movements.
Did SAHN’s recent earnings growth beat the long-term trend and the industry?
SAHN’s trailing twelve-month earnings (from 30 September 2018) of CHF9.4m has increased by 7.4% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -6.7%, indicating the rate at which SAHN is growing has accelerated. What’s the driver of this growth? Let’s see whether it is merely attributable to an industry uplift, or if Schaffner Holding has seen some company-specific growth.
In terms of returns from investment, Schaffner Holding has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 6.8% exceeds the CH Electronic industry of 5.8%, indicating Schaffner Holding has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Schaffner Holding’s debt level, has increased over the past 3 years from 12% to 29%.
What does this mean?
Schaffner Holding’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Schaffner Holding gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Schaffner Holding to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for SAHN’s future growth? Take a look at our free research report of analyst consensus for SAHN’s outlook.
- Financial Health: Are SAHN’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 September 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at firstname.lastname@example.org.