When Etn Fr. Colruyt NV (ENXTBR:COLR) announced its most recent earnings (30 September 2017), 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 Etn. Fr. Colruyt 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 COLR has performed. See our latest analysis for Etn. Fr. Colruyt
Did COLR perform worse than its track record and industry?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to examine different stocks in a uniform manner using new information. For Etn. Fr. Colruyt, its most recent bottom-line (trailing twelve month) is €369.30M, which compared to the prior year’s figure, has plunged by -1.63%. Since these values may be somewhat short-term thinking, I have determined an annualized five-year value for Etn. Fr. Colruyt’s earnings, which stands at €352.26M This means on average, Etn. Fr. Colruyt has been able to improve its earnings over the last couple of years.
What’s the driver of this growth? Well, let’s take a look at whether it is merely a result of an industry uplift, or if Etn. Fr. Colruyt has seen some company-specific growth. The hike in earnings seems to be propelled by a robust top-line increase outpacing its growth rate of costs. Though this resulted in a margin contraction, it has made Etn. Fr. Colruyt more profitable. Scanning growth from a sector-level, the BE consumer retailing industry has been growing its average earnings by double-digit 15.60% in the prior year, and a more muted 4.10% over the past five years. This means any tailwind the industry is profiting from, Etn. Fr. Colruyt has not been able to realize the gains unlike its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. 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: Is 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 30 September 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.