After looking at Moury Construct SA’s (ENXTBR:MOUR) latest earnings announcement (30 June 2019), I found it useful to revisit the company’s performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Moury Construct’s performance has been impacted by industry movements. In this article I briefly touch on my key findings.
Could MOUR beat the long-term trend and outperform its industry?
MOUR’s trailing twelve-month earnings (from 30 June 2019) of €5.0m has jumped 24% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 11%, indicating the rate at which MOUR is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is merely a result of an industry uplift, or if Moury Construct has experienced some company-specific growth.
In terms of returns from investment, Moury Construct has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 4.5% exceeds the BE Construction industry of 4.3%, indicating Moury Construct has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Moury Construct’s debt level, has increased over the past 3 years from 9.0% to 11%.
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? You should continue to research Moury Construct to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MOUR’s future growth? Take a look at our free research report of analyst consensus for MOUR’s outlook.
- Financial Health: Are MOUR’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 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 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. Thank you for reading.