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Examining eDreams ODIGEO SA’s (BME:EDR) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess EDR’s latest performance announced on 31 March 2018 and compare these figures to its longer term trend and industry movements.
View our latest analysis for eDreams ODIGEO
How Well Did EDR Perform?
EDR recently turned a profit of €19.72m (most recent trailing twelve-months) compared to its average loss of -€39.55m over the past five years.
Over the past couple of years, eDreams ODIGEO expanded its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Scanning growth from a sector-level, the ES online retail industry has been growing its average earnings by double-digit 21.25% in the prior year, and 23.79% over the previous five years. Since the sector in is relatively small, I’ve included similar companies in the wider region in order to get a better idea of the growth, which is a median of profitable companies of companies such as , and . This suggests that any uplift the industry is profiting from, eDreams ODIGEO is able to leverage this to its advantage.
In terms of returns from investment, eDreams ODIGEO has fallen short of achieving a 20% return on equity (ROE), recording 4.81% instead. Furthermore, its return on assets (ROA) of 4.72% is below the ES Online Retail industry of 5.67%, indicating eDreams ODIGEO’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for eDreams ODIGEO’s debt level, has increased over the past 3 years from 2.36% to 5.87%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 158.87% to 104.67% 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 eDreams ODIGEO gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research eDreams ODIGEO to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for EDR’s future growth? Take a look at our free research report of analyst consensus for EDR’s outlook.
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Financial Health: Are EDR’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.