Interested In Etn. Fr. Colruyt NV (EBR:COLR)? Here’s What Its Recent Performance Looks Like

In this article, I will take a look at Etn. Fr. Colruyt NV’s (EBR:COLR) most recent earnings update (30 September 2018) and compare these latest figures against its performance over the past few years, along with how the rest of COLR’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.

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

COLR’s trailing twelve-month earnings (from 30 September 2018) of €401m has increased by 8.5% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.3%, indicating the rate at which COLR is growing has accelerated. What’s the driver of this growth? Let’s take a look at whether it is only attributable to industry tailwinds, or if Etn. Fr. Colruyt has seen some company-specific growth.

ENXTBR:COLR Income Statement, March 24th 2019
ENXTBR:COLR Income Statement, March 24th 2019

In terms of returns from investment, Etn. Fr. Colruyt has fallen short of achieving a 20% return on equity (ROE), recording 20% instead. However, its return on assets (ROA) of 9.2% exceeds the BE Consumer Retailing industry of 6.0%, indicating Etn. Fr. Colruyt has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Etn. Fr. Colruyt’s debt level, has declined over the past 3 years from 25% to 23%.

What does this mean?

Etn. Fr. Colruyt’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Etn. Fr. Colruyt has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Etn. Fr. Colruyt to get a better picture of the stock by looking at:

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

  2. Financial Health: Are COLR’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 September 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.