Assessing Moncler S.p.A.'s (BIT:MONC) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess MONC's recent performance announced on 30 June 2019 and evaluate these figures to its longer term trend and industry movements.
Did MONC's recent earnings growth beat the long-term trend and the industry?
MONC's trailing twelve-month earnings (from 30 June 2019) of €341m has jumped 26% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 23%, indicating the rate at which MONC is growing has accelerated. What's the driver of this growth? Let's see whether it is only a result of an industry uplift, or if Moncler has seen some company-specific growth.
In terms of returns from investment, Moncler has invested its equity funds well leading to a 34% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 17% exceeds the IT Luxury industry of 5.4%, indicating Moncler has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Moncler’s debt level, has declined over the past 3 years from 36% to 26%.
What does this mean?
Though Moncler'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 suggest you continue to research Moncler to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MONC’s future growth? Take a look at our free research report of analyst consensus for MONC’s outlook.
- Financial Health: Are MONC’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.
- 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 June 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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