With 26% Earnings Growth, Did Kulmbacher Brauerei Aktien-Gesellschaft (MUN:KUL) Outperform The Industry?

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.

See our latest analysis for Kulmbacher Brauerei Aktien-Gesellschaft

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.

MUN:KUL Income Statement, August 26th 2019
MUN:KUL Income Statement, August 26th 2019

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:

  1. 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.
  2. 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.
  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 December 2018. 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.