COPAM - Companhia Portuguesa de Amidos, S.A. (ELI:CPA): Did It Outperform The Industry?

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For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine COPAM - Companhia Portuguesa de Amidos, S.A.'s (ELI:CPA) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.

View our latest analysis for COPAM - Companhia Portuguesa de Amidos

Did CPA's recent performance beat its trend and industry?

CPA's trailing twelve-month earnings (from 31 December 2018) of €978k has increased by 0.7% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -18%, indicating the rate at which CPA is growing has accelerated. What's enabled this growth? Let's see whether it is solely a result of an industry uplift, or if COPAM - Companhia Portuguesa de Amidos has experienced some company-specific growth.

ENXTLS:CPA Income Statement, July 20th 2019
ENXTLS:CPA Income Statement, July 20th 2019

In terms of returns from investment, COPAM - Companhia Portuguesa de Amidos has fallen short of achieving a 20% return on equity (ROE), recording 8.8% instead. Furthermore, its return on assets (ROA) of 5.0% is below the PT Food industry of 5.5%, indicating COPAM - Companhia Portuguesa de Amidos's are utilized less efficiently. However, its return on capital (ROC), which also accounts for COPAM - Companhia Portuguesa de Amidos’s debt level, has increased over the past 3 years from 0.7% to 8.8%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. I recommend you continue to research COPAM - Companhia Portuguesa de Amidos to get a better picture of the stock by looking at:

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

  2. Financial Health: Are CPA’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 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.