How SA’s (EPA:ALVU) Earnings Growth Stacks Up Against The Industry

In this commentary, I will examine SA’s (EPA:ALVU) latest earnings update (30 September 2018) and compare these figures against its performance over the past couple of years, as well as how the rest of the online retail industry performed. As an investor, I find it beneficial to assess ALVU’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.

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Commentary On ALVU’s Past Performance

ALVU’s trailing twelve-month earnings (from 30 September 2018) of €2.7m has increased by 0.04% 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 12%, indicating the rate at which ALVU is growing has slowed down. What could be happening here? Well, let’s take a look at what’s occurring with margins and whether the entire industry is feeling the heat.

ENXTPA:ALVU Income Statement Export January 29th 19
ENXTPA:ALVU Income Statement Export January 29th 19

In terms of returns from investment, has invested its equity funds well leading to a 20% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 7.8% exceeds the FR Online Retail industry of 6.0%, indicating has used its assets more efficiently. However, its return on capital (ROC), which also accounts for’s debt level, has declined over the past 3 years from 43% to 29%.

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 to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for ALVU’s future growth? Take a look at our free research report of analyst consensus for ALVU’s outlook.
  2. Financial Health: Are ALVU’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 30 September 2018. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at