Examining CNP Assurances SA's (EPA:CNP) 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 CNP's latest performance announced on 31 March 2019 and weight these figures against its longer term trend and industry movements.
Were CNP's earnings stronger than its past performances and the industry?
CNP's trailing twelve-month earnings (from 31 March 2019) of €1.3b has increased by 6.6% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.1%, indicating the rate at which CNP is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is solely because of industry tailwinds, or if CNP Assurances has experienced some company-specific growth.
In terms of returns from investment, CNP Assurances has fallen short of achieving a 20% return on equity (ROE), recording 8.6% instead. Furthermore, its return on assets (ROA) of 0.4% is below the FR Insurance industry of 0.9%, indicating CNP Assurances's are utilized less efficiently. However, its return on capital (ROC), which also accounts for CNP Assurances’s debt level, has increased over the past 3 years from 3.0% to 3.8%.
What does this mean?
CNP Assurances's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While CNP Assurances 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 CNP Assurances to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CNP’s future growth? Take a look at our free research report of analyst consensus for CNP’s outlook.
- Financial Health: Are CNP’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 March 2019. This may not be consistent with full year annual report figures.
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