Examining Jumbo SA’s (ATH:BELA) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess BELA’s latest performance announced on 30 June 2018 and weigh these figures against its longer term trend and industry movements.
View our latest analysis for Jumbo
How BELA fared against its long-term earnings performance and its industry
BELA’s trailing twelve-month earnings (from 30 June 2018) of €151m has jumped 15% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 13%, indicating the rate at which BELA is growing has accelerated. How has it been able to do this? Let’s see whether it is only due to an industry uplift, or if Jumbo has experienced some company-specific growth.
In terms of returns from investment, Jumbo has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 11% exceeds the GR Specialty Retail industry of 4.2%, indicating Jumbo has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Jumbo’s debt level, has increased over the past 3 years from 14% to 18%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 23% to 14% over the past 5 years.
What does this mean?
Though Jumbo’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Jumbo gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Jumbo 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 BELA’s future growth? Take a look at our free research report of analyst consensus for BELA’s outlook.
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Financial Health: Are BELA’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.