Measuring ASR Nederland NV’s (AMS:ASRNL) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess ASRNL’s recent performance announced on 30 June 2018 and compare these figures to its historical trend and industry movements.
Did ASRNL’s recent earnings growth beat the long-term trend and the industry?
ASRNL’s trailing twelve-month earnings (from 30 June 2018) of €843m has jumped 32% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 23%, indicating the rate at which ASRNL is growing has accelerated. What’s enabled this growth? Let’s see if it is only owing to an industry uplift, or if ASR Nederland has seen some company-specific growth.
In terms of returns from investment, ASR Nederland has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 1.7% exceeds the NL Insurance industry of 1.3%, indicating ASR Nederland has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for ASR Nederland’s debt level, has declined over the past 3 years from 2.7% to 2.4%.
What does this mean?
ASR Nederland’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While ASR Nederland has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research ASR Nederland to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ASRNL’s future growth? Take a look at our free research report of analyst consensus for ASRNL’s outlook.
- Financial Health: Are ASRNL’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 June 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.