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Understanding Bet-At-Home.com AG’s (ETR:ACX) 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 Bet-At-Home.com is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period.
Was ACX weak performance lately part of a long-term decline?
ACX’s trailing twelve-month earnings (from 31 March 2019) of €35m has declined by -2.2% 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 9.8%, indicating the rate at which ACX is growing has slowed down. Why is this? Let’s examine what’s transpiring with margins and if the rest of the industry is facing the same headwind.
In terms of returns from investment, Bet-At-Home.com has invested its equity funds well leading to a 45% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 29% exceeds the DE Hospitality industry of 4.5%, indicating Bet-At-Home.com has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bet-At-Home.com’s debt level, has increased over the past 3 years from 34% to 47%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I suggest you continue to research Bet-At-Home.com to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ACX’s future growth? Take a look at our free research report of analyst consensus for ACX’s outlook.
- Financial Health: Are ACX’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.