In this commentary, I will examine Lacroix SA's (ENXTPA:LACR) latest earnings update (30 September 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the electronic industry performed. As an investor, I find it beneficial to assess LACR’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
How Well Did LACR Perform?
LACR's trailing twelve-month earnings (from 30 September 2019) of €11m has jumped 29% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 28%, indicating the rate at which LACR is growing has accelerated. What's the driver of this growth? Let's see whether it is solely a result of industry tailwinds, or if Lacroix has seen some company-specific growth.
In terms of returns from investment, Lacroix has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 3.5% exceeds the FR Electronic industry of 3.4%, indicating Lacroix has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Lacroix’s debt level, has increased over the past 3 years from 6.3% to 11%.
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 Lacroix gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Lacroix to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for LACR’s future growth? Take a look at our free research report of analyst consensus for LACR’s outlook.
- Financial Health: Are LACR’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 30 September 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 firstname.lastname@example.org. 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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