Analyzing Rémy Cointreau SA’s (ENXTPA:RCO) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess RCO’s recent performance announced on 30 September 2017 and compare these figures to its long-term trend and industry movements. Check out our latest analysis for Rémy Cointreau
How Did RCO’s Recent Performance Stack Up Against Its Past?
I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to examine different companies in a uniform manner using new information. For Rémy Cointreau, its most recent trailing-twelve-month earnings is €138.50M, which, against last year’s figure, has increased by 23.55%. Given that these values are somewhat short-term, I have estimated an annualized five-year value for Rémy Cointreau’s net income, which stands at €107.10M This means that, generally, Rémy Cointreau has been able to increasingly raise its profits over the last few years as well.What’s enabled this growth? Let’s take a look at whether it is solely due to an industry uplift, or if Rémy Cointreau has seen some company-specific growth. In the last few years, Rémy Cointreau top-line expansion has outpaced earnings and the growth rate of expenses. Though this brought about a margin contraction, it has lessened Rémy Cointreau’s earnings contraction. Inspecting growth from a sector-level, the FR beverage industry has been growing its average earnings by double-digit 24.97% in the previous year, and a more muted 2.90% over the past five. This means any uplift the industry is benefiting from, Rémy Cointreau has not been able to gain as much as its average peer.
What does this mean?
Rémy Cointreau’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? You should continue to research Rémy Cointreau to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for RCO’s future growth? Take a look at our free research report of analyst consensus for RCO’s outlook.
- 2. Financial Health: Is RCO’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.