Want To Invest In Trigano S.A. (EPA:TRI)? Here's How It Performed Lately

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When Trigano S.A.'s (EPA:TRI) announced its latest earnings (28 February 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Trigano's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not TRI actually performed well. Below is a quick commentary on how I see TRI has performed.

Check out our latest analysis for Trigano

How Well Did TRI Perform?

TRI's trailing twelve-month earnings (from 28 February 2019) of €187m has jumped 31% 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 39%, indicating the rate at which TRI 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 experiencing the hit as well.

In terms of returns from investment, Trigano has invested its equity funds well leading to a 23% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 11% exceeds the FR Auto industry of 3.7%, indicating Trigano has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Trigano’s debt level, has increased over the past 3 years from 18% to 21%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 39% to 32% over the past 5 years.

What does this mean?

Trigano's track record can be a valuable insight into its earnings performance, but it certainly 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? I suggest you continue to research Trigano to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for TRI’s future growth? Take a look at our free research report of analyst consensus for TRI’s outlook.
2. Financial Health: Are TRI’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 28 February 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 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.