Yahoo Finance With A -7.0% Earnings Drop, Is Fresenius SE & Co. KGaA's (FRA:FRE) A Concern?
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Fresenius SE & Co. KGaA's (FRA:FRE) 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.
View our latest analysis for Fresenius SE KGaA
How Well Did FRE Perform?
FRE's trailing twelve-month earnings (from 30 June 2019) of €1.9b has declined by -7.0% 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 14%, indicating the rate at which FRE is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and if the entire industry is experiencing the hit as well.
In terms of returns from investment, Fresenius SE KGaA has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 3.9% is below the DE Healthcare industry of 4.3%, indicating Fresenius SE KGaA's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Fresenius SE KGaA’s debt level, has declined over the past 3 years from 11% to 8.0%.
What does this mean?
Though Fresenius SE KGaA's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. You should continue to research Fresenius SE KGaA to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for FRE’s future growth? Take a look at our free research report of analyst consensus for FRE’s outlook.
Financial Health: Are FRE’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 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 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.
