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Does Etn. Fr. Colruyt NV's (EBR:COLR) Past Performance Indicate A Stronger Future?

Simply Wall St

Assessing Etn. Fr. Colruyt NV's (ENXTBR:COLR) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess COLR's recent performance announced on 31 March 2019 and evaluate these figures to its longer term trend and industry movements.

See our latest analysis for Etn. Fr. Colruyt

How COLR fared against its long-term earnings performance and its industry

COLR's trailing twelve-month earnings (from 31 March 2019) of €383m has increased by 2.5% 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 3.0%, indicating the rate at which COLR is growing has slowed down. To understand what's happening, let's examine what's transpiring with margins and if the entire industry is feeling the heat.

ENXTBR:COLR Income Statement, November 6th 2019

In terms of returns from investment, Etn. Fr. Colruyt has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 9.2% exceeds the BE Consumer Retailing industry of 4.0%, 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 23% to 20%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 0.6% to 1.6% over the past 5 years.

What does this mean?

Though Etn. Fr. Colruyt's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as Etn. Fr. Colruyt gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you 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 31 March 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 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.