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How Does Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine’s (EPA:CIV) Earnings Growth Stack Up Against Industry Performance?

Sean Barnes

Understanding Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine’s (ENXTPA:CIV) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period. Check out our latest analysis for Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine

Did CIV’s recent earnings growth beat the long-term trend and the industry?

For the purpose of this commentary, I like to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to analyze different companies in a uniform manner using the latest information. For Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine, its latest trailing-twelve-month earnings is €72.28M, which, in comparison to the previous year’s figure, has jumped up by 11.35%. Given that these figures are relatively nearsighted, I’ve created an annualized five-year value for CIV’s earnings, which stands at €70.83M This suggests that, on average, Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine has been able to increasingly improve its earnings over the past few years as well.

ENXTPA:CIV Income Statement Apr 26th 18

What’s enabled this growth? Let’s take a look at whether it is solely due to an industry uplift, or if Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine has experienced some company-specific growth. In the past few years, Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine grew its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the FR banks industry has been relatively flat in terms of earnings growth over the past few years. This means that whatever recent headwind the industry is enduring, the impact on Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine has been softer relative to its peers.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Caisse Régionale De Crédit Agricole Mutuel D’ille-Et-Vilaine to get a more holistic view of the stock by looking at:

  1. Financial Health: Is CIV’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.
  2. Valuation: What is CIV worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CIV is currently mispriced by the market.
  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 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.