Advertisement
UK markets closed
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • FTSE 250

    19,884.73
    +74.07 (+0.37%)
     
  • AIM

    743.26
    +1.15 (+0.15%)
     
  • GBP/EUR

    1.1706
    +0.0012 (+0.11%)
     
  • GBP/USD

    1.2629
    +0.0007 (+0.06%)
     
  • Bitcoin GBP

    55,989.77
    +896.66 (+1.63%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • DOW

    39,807.37
    +47.29 (+0.12%)
     
  • CRUDE OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD FUTURES

    2,254.80
    +16.40 (+0.73%)
     
  • NIKKEI 225

    40,306.75
    +138.68 (+0.35%)
     
  • HANG SENG

    16,541.42
    +148.58 (+0.91%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • CAC 40

    8,205.81
    +1.00 (+0.01%)
     

Interested In Deutsche Börse AG (ETR:DB1)? Here's What Its Recent Performance Looks Like

Today I will take a look at Deutsche Börse AG's (XTRA:DB1) 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 capital markets industry performed. As an investor, I find it beneficial to assess DB1’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.

See our latest analysis for Deutsche Börse

How Did DB1's Recent Performance Stack Up Against Its Past?

DB1's trailing twelve-month earnings (from 30 June 2019) of €907m has increased by 3.4% compared to the previous year.

ADVERTISEMENT

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.9%, indicating the rate at which DB1 is growing has slowed down. What could be happening here? Well, let's examine what's going on with margins and whether the rest of the industry is experiencing the hit as well.

XTRA:DB1 Income Statement, October 14th 2019
XTRA:DB1 Income Statement, October 14th 2019

In terms of returns from investment, Deutsche Börse has fallen short of achieving a 20% return on equity (ROE), recording 19% instead. Furthermore, its return on assets (ROA) of 0.6% is below the DE Capital Markets industry of 2.0%, indicating Deutsche Börse's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Deutsche Börse’s debt level, has increased over the past 3 years from 5.8% to 11%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 46% to 46% over the past 5 years.

What does this mean?

Deutsche Börse's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Deutsche Börse has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. You should continue to research Deutsche Börse to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for DB1’s future growth? Take a look at our free research report of analyst consensus for DB1’s outlook.

  2. Financial Health: Are DB1’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.

  3. 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.

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.