Yahoo Finance Where KWS SAAT SE & Co. KGaA (ETR:KWS) Stands In Terms Of Earnings Growth Against Its Industry
When KWS SAAT SE & Co. KGaA (XTRA:KWS) announced its most recent earnings (30 June 2019), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how KWS SAAT SE KGaA performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see KWS has performed.
See our latest analysis for KWS SAAT SE KGaA
Were KWS's earnings stronger than its past performances and the industry?
KWS's trailing twelve-month earnings (from 30 June 2019) of €104m has increased by 4.6% 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 12%, indicating the rate at which KWS is growing has slowed down. What could be happening here? Well, let's examine what's occurring with margins and if the whole industry is experiencing the hit as well.
In terms of returns from investment, KWS SAAT SE KGaA has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 5.5% exceeds the DE Food industry of 5.1%, indicating KWS SAAT SE KGaA has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for KWS SAAT SE KGaA’s debt level, has increased over the past 3 years from 7.3% to 8.1%.
What does this mean?
Though KWS SAAT SE KGaA'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 KWS SAAT SE KGaA to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for KWS’s future growth? Take a look at our free research report of analyst consensus for KWS’s outlook.
Financial Health: Are KWS’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.
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.
