Examining Compagnie de Saint-Gobain SA.’s (ENXTPA:SGO) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess SGO’s latest performance announced on 31 December 2017 and weight these figures against its longer term trend and industry movements. View our latest analysis for Compagnie de Saint-Gobain
How SGO fared against its long-term earnings performance and its industry
I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique allows me to analyze various companies on a more comparable basis, using the most relevant data points. For Compagnie de Saint-Gobain, its most recent earnings (trailing twelve month) is €1.57B, which, in comparison to last year’s figure, has jumped up by 19.45%. Given that these values may be relatively short-term thinking, I have calculated an annualized five-year figure for Compagnie de Saint-Gobain’s earnings, which stands at €864.70M This means on average, Compagnie de Saint-Gobain has been able to gradually grow its earnings over the past few years as well.
What’s enabled this growth? Well, let’s take a look at whether it is solely because of industry tailwinds, or if Compagnie de Saint-Gobain has experienced some company-specific growth. In the last couple of years, Compagnie de Saint-Gobain grew bottom-line, while its top-line declined, by successfully controlling its costs. This has led to to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the FR building industry has been growing, albeit, at a subdued single-digit rate of 6.72% over the previous twelve months, and a flatter 1.80% over the last five years. This means whatever uplift the industry is enjoying, Compagnie de Saint-Gobain is able to leverage this to its advantage.
What does this mean?
Though Compagnie de Saint-Gobain’s past data is helpful, it is only one aspect of my investment thesis. While Compagnie de Saint-Gobain 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 Compagnie de Saint-Gobain to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for SGO’s future growth? Take a look at our free research report of analyst consensus for SGO’s outlook.
- Financial Health: Is SGO’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 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.