Interested In L'Air Liquide S.A. (EPA:AI)? Here's What Its Recent Performance Looks Like
Examining L'Air Liquide S.A.'s (ENXTPA:AI) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess AI's latest performance announced on 31 December 2019 and compare these figures to its longer term trend and industry movements.
View our latest analysis for L'Air Liquide S.A
Commentary On AI's Past Performance
AI's trailing twelve-month earnings (from 31 December 2019) of €2.2b has increased by 6.1% 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 6.5%, indicating the rate at which AI is growing has slowed down. To understand what's happening, let's look at what's occurring with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, L'Air Liquide S.A has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 6.1% exceeds the FR Chemicals industry of 3.4%, indicating L'Air Liquide S.A has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for L'Air Liquide S.A’s debt level, has increased over the past 3 years from 7.5% to 9.7%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While L'Air Liquide S.A has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research L'Air Liquide S.A to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for AI’s future growth? Take a look at our free research report of analyst consensus for AI’s outlook.
Financial Health: Are AI’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.
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 2019. This may not be consistent with full year annual report figures.
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.
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. Thank you for reading.
