Measuring Bechtle AG's (XTRA:BC8) track record of past performance is a useful exercise for investors. It enables 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 BC8's recent performance announced on 30 September 2019 and weigh these figures against its long-term trend and industry movements.
Commentary On BC8's Past Performance
BC8's trailing twelve-month earnings (from 30 September 2019) of €160m has jumped 28% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 14%, indicating the rate at which BC8 is growing has accelerated. What's enabled this growth? Well, let’s take a look at whether it is only a result of an industry uplift, or if Bechtle has seen some company-specific growth.
In terms of returns from investment, Bechtle has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 7.7% exceeds the DE IT industry of 5.1%, indicating Bechtle has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Bechtle’s debt level, has declined over the past 3 years from 18% to 15%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 11% to 33% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Bechtle 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 Bechtle to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for BC8’s future growth? Take a look at our free research report of analyst consensus for BC8’s outlook.
- Financial Health: Are BC8’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.
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.
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