Was EVS Broadcast Equipment S.A.'s (EBR:EVS) Earnings Growth Better Than The Industry's?

Examining EVS Broadcast Equipment S.A.'s (EBR:EVS) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess EVS's latest performance announced on 31 December 2018 and compare these figures to its longer term trend and industry movements.

See our latest analysis for EVS Broadcast Equipment

How Did EVS's Recent Performance Stack Up Against Its Past?

EVS's trailing twelve-month earnings (from 31 December 2018) of €35m has jumped 47% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -4.5%, indicating the rate at which EVS is growing has accelerated. How has it been able to do this? Let's take a look at whether it is solely attributable to an industry uplift, or if EVS Broadcast Equipment has experienced some company-specific growth.

In terms of returns from investment, EVS Broadcast Equipment has invested its equity funds well leading to a 25% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 20% exceeds the BE Communications industry of 4.7%, indicating EVS Broadcast Equipment has used its assets more efficiently. However, its return on capital (ROC), which also accounts for EVS Broadcast Equipment’s debt level, has declined over the past 3 years from 32% to 19%.

What does this mean?

EVS Broadcast Equipment's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as EVS Broadcast Equipment gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research EVS Broadcast Equipment to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for EVS’s future growth? Take a look at our free research report of analyst consensus for EVS’s outlook.
2. Financial Health: Are EVS’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.
3. 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 December 2018. 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.