Want To Invest In Groupe Open (EPA:OPN)? Here’s How It Performed Lately

Measuring Groupe Open’s (EPA:OPN) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess OPN’s recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Check out our latest analysis for Groupe Open

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

OPN’s trailing twelve-month earnings (from 31 December 2018) of €11m has increased by 5.8% 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 18%, indicating the rate at which OPN is growing has slowed down. What could be happening here? Well, let’s examine what’s occurring with margins and whether the rest of the industry is facing the same headwind.

ENXTPA:OPN Income Statement, May 23rd 2019
ENXTPA:OPN Income Statement, May 23rd 2019

In terms of returns from investment, Groupe Open has fallen short of achieving a 20% return on equity (ROE), recording 9.6% instead. However, its return on assets (ROA) of 4.8% exceeds the FR IT industry of 4.3%, indicating Groupe Open has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Groupe Open’s debt level, has increased over the past 3 years from 15% to 17%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 29% to 17% over the past 5 years.

What does this mean?

Groupe Open’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Groupe Open gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Groupe Open to get a more holistic view of the stock by looking at:

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