In This Article:
Assessing Samse SA’s (EPA:SAMS) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess SAMS’s recent performance announced on 30 June 2018 and evaluate these figures to its long-term trend and industry movements.
View our latest analysis for Samse
Did SAMS beat its long-term earnings growth trend and its industry?
SAMS’s trailing twelve-month earnings (from 30 June 2018) of €41m has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.2%, indicating the rate at which SAMS is growing has accelerated. What’s the driver of this growth? Let’s see if it is merely due to an industry uplift, or if Samse has experienced some company-specific growth.
In terms of returns from investment, Samse has fallen short of achieving a 20% return on equity (ROE), recording 9.6% instead. However, its return on assets (ROA) of 4.1% exceeds the FR Specialty Retail industry of 3.9%, indicating Samse has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Samse’s debt level, has increased over the past 3 years from 8.3% to 8.6%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 63% to 53% over the past 5 years.
What does this mean?
Samse’s track record can be a valuable insight into its earnings performance, but it certainly 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? I suggest you continue to research Samse to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for SAMS’s future growth? Take a look at our free research report of analyst consensus for SAMS’s outlook.
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Financial Health: Are SAMS’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.
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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 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 editorial-team@simplywallst.com.