Yahoo Finance How Does DO & CO Aktiengesellschaft's (VIE:DOC) Earnings Growth Stack Up Against Industry Performance?
Today I will take a look at DO & CO Aktiengesellschaft's (VIE:DOC) most recent earnings update (30 June 2019) and compare these latest figures against its performance over the past few years, as well as how the rest of the hospitality industry performed. As an investor, I find it beneficial to assess DOC’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
Check out our latest analysis for DO & CO
Commentary On DOC's Past Performance
DOC's trailing twelve-month earnings (from 30 June 2019) of €27m has increased by 6.5% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -7.9%, indicating the rate at which DOC is growing has accelerated. What's the driver of this growth? Well, let’s take a look at whether it is merely because of an industry uplift, or if DO & CO has experienced some company-specific growth.
In terms of returns from investment, DO & CO has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. Furthermore, its return on assets (ROA) of 4.0% is below the AT Hospitality industry of 4.5%, indicating DO & CO's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for DO & CO’s debt level, has declined over the past 3 years from 13% to 9.5%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 71% to 102% over the past 5 years.
What does this mean?
Though DO & CO's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as DO & CO gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research DO & CO to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for DOC’s future growth? Take a look at our free research report of analyst consensus for DOC’s outlook.
Financial Health: Are DOC’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.
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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.
