Yahoo Finance Does MAN SE's (ETR:MAN) 30% Earnings Growth Reflect The Long-Term Trend?
Analyzing MAN SE's (ETR:MAN) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess MAN's recent performance announced on 30 June 2019 and compare these figures to its long-term trend and industry movements.
View our latest analysis for MAN
Did MAN's recent earnings growth beat the long-term trend and the industry?
MAN's trailing twelve-month earnings (from 30 June 2019) of €493m has jumped 30% 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 32%, indicating the rate at which MAN is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, MAN has fallen short of achieving a 20% return on equity (ROE), recording 8.0% instead. Furthermore, its return on assets (ROA) of 2.0% is below the DE Machinery industry of 5.1%, indicating MAN's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for MAN’s debt level, has declined over the past 3 years from 3.3% to 3.3%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 47% to 62% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While MAN has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research MAN to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for MAN’s future growth? Take a look at our free research report of analyst consensus for MAN’s outlook.
Financial Health: Are MAN’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.
