In This Article:
Examining Sopra Steria Group SA's (EPA:SOP) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess SOP's latest performance announced on 30 June 2019 and weight these figures against its longer term trend and industry movements.
View our latest analysis for Sopra Steria Group
Have SOP's earnings improved against past performances and the industry?
SOP's trailing twelve-month earnings (from 30 June 2019) of €148m has increased by 1.8% 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 14%, indicating the rate at which SOP is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and if the whole industry is facing the same headwind.
In terms of returns from investment, Sopra Steria Group has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. Furthermore, its return on assets (ROA) of 3.6% is below the FR IT industry of 4.5%, indicating Sopra Steria Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Sopra Steria Group’s debt level, has increased over the past 3 years from 11% to 12%.
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 Sopra Steria Group 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 SOP’s future growth? Take a look at our free research report of analyst consensus for SOP’s outlook.
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Financial Health: Are SOP’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 June 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.