Measuring Compagnie des Alpes SA’s (ENXTPA:CDA) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess CDA’s recent performance announced on 30 September 2019 and compare these figures to its historical trend and industry movements.
How Did CDA’s Recent Performance Stack Up Against Its Past?
CDA’s trailing twelve-month earnings (from 30 September 2019) of €62m has jumped 16% 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 17%, indicating the rate at which CDA is growing has slowed down. To understand what’s happening, let’s take a look at what’s going on with margins and if the whole industry is facing the same headwind.
In terms of returns from investment, Compagnie des Alpes has fallen short of achieving a 20% return on equity (ROE), recording 7.7% instead. However, its return on assets (ROA) of 3.9% exceeds the FR Hospitality industry of 3.3%, indicating Compagnie des Alpes has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Compagnie des Alpes’s debt level, has increased over the past 3 years from 6.0% to 8.1%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 53% to 50% over the past 5 years.
What does this mean?
Compagnie des Alpes’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Compagnie des Alpes has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Compagnie des Alpes to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CDA’s future growth? Take a look at our free research report of analyst consensus for CDA’s outlook.
- Financial Health: Are CDA’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 email@example.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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