In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Examining Rémy Cointreau SA's (EPA:RCO) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess RCO's latest performance announced on 31 March 2019 and weigh these figures against its longer term trend and industry movements.
Check out our latest analysis for Rémy Cointreau
Were RCO's earnings stronger than its past performances and the industry?
RCO's trailing twelve-month earnings (from 31 March 2019) of €159m has increased by 7.4% 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 18%, indicating the rate at which RCO is growing has slowed down. What could be happening here? Well, let's examine what's occurring with margins and whether the whole industry is experiencing the hit as well.
In terms of returns from investment, Rémy Cointreau has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 6.3% exceeds the FR Beverage industry of 3.1%, indicating Rémy Cointreau has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Rémy Cointreau’s debt level, has increased over the past 3 years from 13% to 14%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 60% to 34% over the past 5 years.
What does this mean?
Rémy Cointreau's track record can be a valuable insight into its earnings performance, but it certainly 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 Rémy Cointreau to get a more holistic view of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for RCO’s future growth? Take a look at our free research report of analyst consensus for RCO’s outlook.
-
Financial Health: Are RCO’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.