Yahoo News Does Bénéteau S.A.'s (EPA:BEN) -19% Earnings Drop Reflect A Longer Term Trend?
Understanding Bénéteau S.A.'s (ENXTPA:BEN) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Bénéteau is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period.
See our latest analysis for Bénéteau
How Did BEN's Recent Performance Stack Up Against Its Past?
BEN's trailing twelve-month earnings (from 31 August 2019) of €49m has declined by -19% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 37%, indicating the rate at which BEN is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and whether the whole industry is feeling the heat.
In terms of returns from investment, Bénéteau has fallen short of achieving a 20% return on equity (ROE), recording 7.5% instead. Furthermore, its return on assets (ROA) of 3.8% is below the FR Leisure industry of 6.7%, indicating Bénéteau's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Bénéteau’s debt level, has increased over the past 3 years from 7.0% to 11%.
What does this mean?
Though Bénéteau's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. I suggest you continue to research Bénéteau to get a better picture of the stock by looking at:
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.
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.
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 2019. This may not be consistent with full year annual report figures.
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.
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