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For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Fountaine Pajot SA’s (ENXTPA:ALFPC) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Fountaine Pajot

Could ALFPC beat the long-term trend and outperform its industry?

I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend enables me to examine different companies in a uniform manner using the latest information. For Fountaine Pajot, its most recent trailing-twelve-month earnings is €6.32M, which, against last year’s figure, has grown by a somewhat muted 4.46%. Since these figures are fairly short-term thinking, I have estimated an annualized five-year value for Fountaine Pajot’s net income, which stands at €2.61M This means generally, Fountaine Pajot has been able to consistently raise its profits over the last couple of years as well.

What’s the driver of this growth? Let’s take a look at whether it is solely because of industry tailwinds, or if Fountaine Pajot has experienced some company-specific growth. In the last few years, Fountaine Pajot increased its bottom line faster than revenue by successfully controlling its costs. This has led to a margin expansion and profitability over time. Looking at growth from a sector-level, the FR leisure industry has been growing its average earnings by double-digit 29.50% over the prior year, and 33.96% over the past five. This means that whatever tailwind the industry is benefiting from, Fountaine Pajot has not been able to realize the gains unlike its average peer.

What does this mean?

Fountaine Pajot’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Fountaine Pajot has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Fountaine Pajot to get a more holistic view of the stock by looking at:

• 1. Future Outlook: What are well-informed industry analysts predicting for ALFPC’s future growth? Take a look at our free research report of analyst consensus for ALFPC’s outlook.

• 2. Financial Health: Is ALFPC’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 August 2017. This may not be consistent with full year annual report figures.
To help readers see pass 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.