Has Bénéteau S.A. (EPA:BEN) Improved Earnings Growth In Recent Times?

When Bénéteau S.A.’s (EPA:BEN) announced its latest earnings (31 August 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Bénéteau’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not BEN actually performed well. Below is a quick commentary on how I see BEN has performed.

Check out our latest analysis for Bénéteau

Did BEN’s recent earnings growth beat the long-term trend and the industry?

BEN’s trailing twelve-month earnings (from 31 August 2018) of €61m has increased by 2.7% 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 54%, indicating the rate at which BEN is growing has slowed down. To understand what’s happening, let’s take a look at what’s transpiring with margins and if the rest of the industry is facing the same headwind.

ENXTPA:BEN Income Statement, April 16th 2019
ENXTPA:BEN Income Statement, April 16th 2019

In terms of returns from investment, Bénéteau has fallen short of achieving a 20% return on equity (ROE), recording 9.5% instead. However, its return on assets (ROA) of 5.7% exceeds the FR Leisure industry of 5.3%, indicating Bénéteau has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bénéteau’s debt level, has increased over the past 3 years from 5.4% to 13%.

What does this mean?

Though Bénéteau’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Bénéteau to get a more holistic view of the stock by looking at:

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