Yahoo Finance Betsson AB (STO:BETS B): Has Recent Earnings Growth Beaten Long-Term Trend?
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Examining Betsson AB's (STO:BETS B) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess BETS B's latest performance announced on 31 December 2018 and weigh these figures against its longer term trend and industry movements.
Check out our latest analysis for Betsson
Did BETS B beat its long-term earnings growth trend and its industry?
BETS B's trailing twelve-month earnings (from 31 December 2018) of kr1.1b has jumped 37% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 7.3%, indicating the rate at which BETS B is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is solely owing to industry tailwinds, or if Betsson has seen some company-specific growth.
In terms of returns from investment, Betsson has invested its equity funds well leading to a 23% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 15% exceeds the SE Hospitality industry of 15%, indicating Betsson has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Betsson’s debt level, has increased over the past 3 years from 24% to 25%.
What does this mean?
Though Betsson's past data is helpful, it is only one aspect of my investment thesis. While Betsson 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 Betsson to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BETS B’s future growth? Take a look at our free research report of analyst consensus for BETS B’s outlook.
Financial Health: Are BETS B’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.
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.
