In This Article:
Measuring SeSa S.p.A.'s (BIT:SES) 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 SES's recent performance announced on 30 April 2019 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for SeSa
How SES fared against its long-term earnings performance and its industry
SES's trailing twelve-month earnings (from 30 April 2019) of €29m has increased by 9.0% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.8%, indicating the rate at which SES is growing has accelerated. What's the driver of this growth? Let's see if it is solely because of an industry uplift, or if SeSa has experienced some company-specific growth.
In terms of returns from investment, SeSa has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. Furthermore, its return on assets (ROA) of 3.5% is below the IT Electronic industry of 4.7%, indicating SeSa's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for SeSa’s debt level, has declined over the past 3 years from 16% to 13%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 21% to 82% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as SeSa gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research SeSa 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 SES’s future growth? Take a look at our free research report of analyst consensus for SES’s outlook.
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Financial Health: Are SES’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 30 April 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.