Yahoo Finance TKH Group N.V. (AMS:TWEKA)’s Earnings Grew 6.1%, Is It Enough?
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at TKH Group N.V.’s (AMS:TWEKA) 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.
Check out our latest analysis for TKH Group
Were TWEKA’s earnings stronger than its past performances and the industry?
TWEKA’s trailing twelve-month earnings (from 30 June 2018) of €99m has increased by 6.1% 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 16%, indicating the rate at which TWEKA is growing has slowed down. Why could this be happening? Well, let’s look at what’s occurring with margins and whether the entire industry is experiencing the hit as well.
In terms of returns from investment, TKH Group has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 7.6% exceeds the NL Electrical industry of 5.5%, indicating TKH Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for TKH Group’s debt level, has increased over the past 3 years from 12% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 69% to 60% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as TKH Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research TKH Group to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TWEKA’s future growth? Take a look at our free research report of analyst consensus for TWEKA’s outlook.
Financial Health: Are TWEKA’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 2018. This may not be consistent with full year annual report figures.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
