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Does Lindab International AB’s (STO:LIAB) Recent Track Record Look Strong?

Measuring Lindab International AB’s (STO:LIAB) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess LIAB’s recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. Check out our latest analysis for Lindab International

Did LIAB’s recent earnings growth beat the long-term trend and the industry?

LIAB’s trailing twelve-month earnings (from 31 March 2018) of kr351.00m has jumped 11.08% 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 20.65%, indicating the rate at which LIAB is growing has slowed down. Why could this be happening? Well, let’s take a look at what’s transpiring with margins and if the entire industry is facing the same headwind.

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In the past few years, revenue growth has fallen behind which indicates that Lindab International’s bottom line has been driven by unsustainable cost-cutting. Scanning growth from a sector-level, the SE building industry has been

OM:LIAB Income Statement June 21st 18
OM:LIAB Income Statement June 21st 18

In terms of returns from investment, Lindab International has not invested its equity funds well, leading to a 8.16% return on equity (ROE), below the sensible minimum of 20%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. 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 Lindab International to get a better picture of the stock by looking at:

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

  2. Financial Health: Is LIAB’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 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass 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.