Yahoo Finance Has CTS Eventim AG & Co. KGaA (ETR:EVD) Improved Earnings Growth In Recent Times?
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 CTS Eventim AG & Co. KGaA's (XTRA:EVD) 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 CTS Eventim KGaA
Could EVD beat the long-term trend and outperform its industry?
EVD's trailing twelve-month earnings (from 30 September 2019) of €127m has jumped 10% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 11%, indicating the rate at which EVD is growing has slowed down. Why could this be happening? Well, let's look at what's going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, CTS Eventim KGaA has invested its equity funds well leading to a 27% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 8.4% exceeds the DE Entertainment industry of 3.0%, indicating CTS Eventim KGaA has used its assets more efficiently. However, its return on capital (ROC), which also accounts for CTS Eventim KGaA’s debt level, has declined over the past 3 years from 29% to 29%.
What does this mean?
Though CTS Eventim KGaA's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as CTS Eventim KGaA gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research CTS Eventim KGaA to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for EVD’s future growth? Take a look at our free research report of analyst consensus for EVD’s outlook.
Financial Health: Are EVD’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 September 2019. This may not be consistent with full year annual report figures.
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.
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. Thank you for reading.
