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In this article, I will take a look at Bénéteau S.A.'s (EPA:BEN) most recent earnings update (31 August 2018) and compare these latest figures against its performance over the past few years, along with how the rest of BEN's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
Check out our latest analysis for Bénéteau
Did BEN beat its long-term earnings growth trend and its industry?
BEN's trailing twelve-month earnings (from 31 August 2018) of €61m has increased by 2.7% 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 54%, indicating the rate at which BEN is growing has slowed down. What could be happening here? Well, let's examine what's occurring with margins and whether the entire industry is experiencing the hit as well.
In terms of returns from investment, Bénéteau has fallen short of achieving a 20% return on equity (ROE), recording 9.5% instead. However, its return on assets (ROA) of 5.7% exceeds the FR Leisure industry of 5.3%, indicating Bénéteau has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bénéteau’s debt level, has increased over the past 3 years from 5.4% to 13%.
What does this mean?
Bénéteau's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Bénéteau gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Bénéteau to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for BEN’s future growth? Take a look at our free research report of analyst consensus for BEN’s outlook.
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Financial Health: Are BEN’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.
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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 August 2018. 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.