SA (EPA:ALVU): Did It Outperform The Industry?

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For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on SA (EPA:ALVU) useful as an attempt to give more color around how is currently performing.

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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 11%, indicating the rate at which ALVU is growing has slowed down. To understand what’s happening, let’s take a look at what’s occurring with margins and if the entire industry is experiencing the hit as well.

ENXTPA:ALVU Income Statement, May 7th 2019
ENXTPA:ALVU Income Statement, May 7th 2019

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 6.1%, 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 31%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you 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.

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 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.