For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Q-Soft Verwaltungs AG’s (BST:QS6A) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Q-Soft Verwaltungs
Did QS6A’s recent earnings growth beat the long-term trend and the industry?QS6A recently turned a profit of €164.60k (most recent trailing twelve-months) compared to its average loss of -€16.95k over the past five years.
Scanning growth from a sector-level, the DE software industry has been growing its average earnings by double-digit 13.98% over the previous twelve months, and 11.16% over the past half a decade. This growth is a median of profitable companies of 25 Software companies in DE including GBS Software, RealDolmen and NetSol Technologies. This means any tailwind the industry is benefiting from, Q-Soft Verwaltungs is capable of amplifying this to its advantage.In terms of returns from investment, Q-Soft Verwaltungs has not invested its equity funds well, leading to a 9.18% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 0.32% is below the DE Software industry of 7.29%, indicating Q-Soft Verwaltungs’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Q-Soft Verwaltungs’s debt level, has increased over the past 3 years from 0.036% to 9.03%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Q-Soft Verwaltungs to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for QS6A’s future growth? Take a look at our free research report of analyst consensus for QS6A’s outlook.
- Financial Health: Is QS6A’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.