Examining Bénéteau SA’s (EPA:BEN) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess BEN’s latest performance announced on 31 August 2018 and weight these figures against its longer term trend and industry movements.

View our latest analysis for Bénéteau

Did BEN beat its long-term earnings growth trend and its industry?

BEN’s trailing twelve-month earnings (from 31 August 2018) of €61m has increased by 2.7% 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 54%, indicating the rate at which BEN is growing has slowed down. Why could this be happening? Well, let’s examine what’s occurring with margins and if the whole industry is feeling the heat.

In terms of returns from investment, Bénéteau has fallen short of achieving a 20% return on equity (ROE), recording 9.5% instead. However, its return on assets (ROA) of 5.8% exceeds the FR Leisure industry of 5.4%, indicating Bénéteau has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Bénéteau’s debt level, has increased over the past 3 years from 3.2% to 13%.

What does this mean?

Bénéteau’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 Bénéteau gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Bénéteau to get a more holistic view of the stock by looking at:

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

2. Financial Health: Are BEN’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 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.