When Kulmbacher Brauerei Aktien-Gesellschaft (MUN:KUL) announced its most recent earnings (31 December 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Kulmbacher Brauerei Aktien-Gesellschaft performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see KUL has performed.
Could KUL beat the long-term trend and outperform its industry?
KUL’s trailing twelve-month earnings (from 31 December 2018) of €9.3m has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 22%, indicating the rate at which KUL is growing has accelerated. How has it been able to do this? Let’s take a look at whether it is only because of an industry uplift, or if Kulmbacher Brauerei Aktien-Gesellschaft has seen some company-specific growth.
In terms of returns from investment, Kulmbacher Brauerei Aktien-Gesellschaft has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 5.4% exceeds the DE Beverage industry of 3.6%, indicating Kulmbacher Brauerei Aktien-Gesellschaft has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Kulmbacher Brauerei Aktien-Gesellschaft’s debt level, has increased over the past 3 years from 7.7% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 28% to 1.9% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Kulmbacher Brauerei Aktien-Gesellschaft has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Kulmbacher Brauerei Aktien-Gesellschaft to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for KUL’s future growth? Take a look at our free research report of analyst consensus for KUL’s outlook.
- Financial Health: Are KUL’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.
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