Measuring Devoteam SA's (EPA:DVT) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess DVT's recent performance announced on 30 June 2019 and weigh these figures against its long-term trend and industry movements.
Commentary On DVT's Past Performance
DVT's trailing twelve-month earnings (from 30 June 2019) of €39m has jumped 39% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 34%, indicating the rate at which DVT is growing has accelerated. How has it been able to do this? Let's take a look at whether it is solely due to industry tailwinds, or if Devoteam has experienced some company-specific growth.
In terms of returns from investment, Devoteam has invested its equity funds well leading to a 24% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 7.5% exceeds the FR IT industry of 4.5%, indicating Devoteam has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Devoteam’s debt level, has increased over the past 3 years from 24% to 27%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Devoteam 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 Devoteam to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for DVT’s future growth? Take a look at our free research report of analyst consensus for DVT’s outlook.
- Financial Health: Are DVT’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 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 firstname.lastname@example.org. 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.