U.S. Markets closed

Does Fiducial Real Estate SA's (EPA:ORIA) Recent Track Record Look Strong?

Simply Wall St

When Fiducial Real Estate SA (ENXTPA:ORIA) announced its most recent earnings (30 September 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Fiducial Real Estate has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see ORIA has performed.

Check out our latest analysis for Fiducial Real Estate

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

ORIA's trailing twelve-month earnings (from 30 September 2019) of €30m has jumped 15% compared to the previous year.

Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.4%, indicating the rate at which ORIA is growing has accelerated. What's the driver of this growth? Let's see whether it is solely because of industry tailwinds, or if Fiducial Real Estate has seen some company-specific growth.

ENXTPA:ORIA Income Statement March 28th 2020

In terms of returns from investment, Fiducial Real Estate has fallen short of achieving a 20% return on equity (ROE), recording 8.3% instead. However, its return on assets (ROA) of 5.2% exceeds the FR Real Estate industry of 2.8%, indicating Fiducial Real Estate has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Fiducial Real Estate’s debt level, has increased over the past 3 years from 5.1% to 5.9%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 109% to 70% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Fiducial Real Estate has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Fiducial Real Estate to get a better picture of the stock by looking at:

  1. Financial Health: Are ORIA’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 ORIA 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 ORIA 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 30 September 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.