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Assessing NRJ Group SA's (EPA:NRG) 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 NRG's recent performance announced on 31 December 2018 and evaluate these figures to its longer term trend and industry movements.
Check out our latest analysis for NRJ Group
How NRG fared against its long-term earnings performance and its industry
NRG's trailing twelve-month earnings (from 31 December 2018) of €22m has jumped 11% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which NRG is growing has accelerated. How has it been able to do this? Let's see if it is merely because of industry tailwinds, or if NRJ Group has experienced some company-specific growth.
In terms of returns from investment, NRJ Group has fallen short of achieving a 20% return on equity (ROE), recording 3.7% instead. Furthermore, its return on assets (ROA) of 2.7% is below the FR Media industry of 4.3%, indicating NRJ Group's are utilized less efficiently. However, its return on capital (ROC), which also accounts for NRJ Group’s debt level, has increased over the past 3 years from 4.7% to 5.0%.
What does this mean?
Though NRJ Group's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. There may be factors that are affecting the entire industry thus the high industry growth rate over the same period of time. I recommend you continue to research NRJ Group to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for NRG’s future growth? Take a look at our free research report of analyst consensus for NRG’s outlook.
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Financial Health: Are NRG’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 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.