Yahoo Finance Did Aeroporto Guglielmo Marconi di Bologna S.p.A.'s (BIT:ADB) Recent Earnings Growth Beat The Trend?
Examining Aeroporto Guglielmo Marconi di Bologna S.p.A.'s (BIT:ADB) 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 ADB's latest performance announced on 31 December 2019 and weigh these figures against its longer term trend and industry movements.
See our latest analysis for Aeroporto Guglielmo Marconi di Bologna
Did ADB beat its long-term earnings growth trend and its industry?
ADB's trailing twelve-month earnings (from 31 December 2019) of €21m has jumped 16% 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 25%, indicating the rate at which ADB is growing has slowed down. To understand what's happening, let's examine what's occurring with margins and whether the rest of the industry is feeling the heat.
In terms of returns from investment, Aeroporto Guglielmo Marconi di Bologna has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 7.9% exceeds the IT Infrastructure industry of 5.1%, indicating Aeroporto Guglielmo Marconi di Bologna has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Aeroporto Guglielmo Marconi di Bologna’s debt level, has increased over the past 3 years from 8.2% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 25% to 9.7% over the past 5 years.
What does this mean?
Though Aeroporto Guglielmo Marconi di Bologna's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Aeroporto Guglielmo Marconi di Bologna to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ADB’s future growth? Take a look at our free research report of analyst consensus for ADB’s outlook.
Financial Health: Are ADB’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 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.
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