Examining Bonduelle SA’s (EPA:BON) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess BON’s latest performance announced on 30 June 2018 and weigh these figures against its longer term trend and industry movements.
Were BON’s earnings stronger than its past performances and the industry?
BON’s trailing twelve-month earnings (from 30 June 2018) of €72m has jumped 21% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 11%, indicating the rate at which BON is growing has accelerated. How has it been able to do this? Let’s take a look at if it is merely a result of industry tailwinds, or if Bonduelle has experienced some company-specific growth.
In terms of returns from investment, Bonduelle has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 4.7% exceeds the FR Food industry of 4.3%, indicating Bonduelle has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Bonduelle’s debt level, has declined over the past 3 years from 11% to 11%.
What does this mean?
Though Bonduelle’s past data is helpful, it is only one aspect of my investment thesis. While Bonduelle has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Bonduelle to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for BON’s future growth? Take a look at our free research report of analyst consensus for BON’s outlook.
- Financial Health: Are BON’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 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at firstname.lastname@example.org.