Does Compañía de Distribución Integral Logista Holdings, S.A.'s (BME:LOG) Past Performance Indicate A Stronger Future?

Simply Wall St

Examining Compañía de Distribución Integral Logista Holdings, S.A.'s (BME:LOG) 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 LOG's latest performance announced on 30 June 2019 and weigh these figures against its longer term trend and industry movements.

Check out our latest analysis for Compañía de Distribución Integral Logista Holdings

How Did LOG's Recent Performance Stack Up Against Its Past?

LOG's trailing twelve-month earnings (from 30 June 2019) of €161m has increased by 6.4% 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 11%, indicating the rate at which LOG is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and if the rest of the industry is feeling the heat.

BME:LOG Income Statement, September 19th 2019

In terms of returns from investment, Compañía de Distribución Integral Logista Holdings has invested its equity funds well leading to a 31% return on equity (ROE), above the sensible minimum of 20%. However, its return on assets (ROA) of 2.1% is below the ES Logistics industry of 3.7%, indicating Compañía de Distribución Integral Logista Holdings's are utilized less efficiently. Though, its return on capital (ROC), which also accounts for Compañía de Distribución Integral Logista Holdings’s debt level, has increased over the past 3 years from 20% to 24%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 10% to 7.0% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Compañía de Distribución Integral Logista Holdings has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Compañía de Distribución Integral Logista Holdings to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for LOG’s future growth? Take a look at our free research report of analyst consensus for LOG’s outlook.
  2. Financial Health: Are LOG’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 30 June 2019. 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.