Should You Be Concerned With OVB Holding AG's (ETR:O4B) -12% Earnings Drop?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
When OVB Holding AG's (ETR:O4B) announced its latest earnings (31 March 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were OVB Holding's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not O4B actually performed well. Below is a quick commentary on how I see O4B has performed.
Check out our latest analysis for OVB Holding
How Did O4B's Recent Performance Stack Up Against Its Past?
O4B's trailing twelve-month earnings (from 31 March 2019) of €10m has declined by -12% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 5.0%, indicating the rate at which O4B is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and if the rest of the industry is experiencing the hit as well.
In terms of returns from investment, OVB Holding has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 4.6% exceeds the DE Capital Markets industry of 2.5%, indicating OVB Holding has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for OVB Holding’s debt level, has declined over the past 3 years from 16% to 11%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. You should continue to research OVB Holding to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for O4B’s future growth? Take a look at our free research report of analyst consensus for O4B’s outlook.
Financial Health: Are O4B’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 31 March 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.
