Today I will take a look at Società Cattolica di Assicurazione - Società Cooperativa's (BIT:CASS) most recent earnings update (30 September 2019) and compare these latest figures against its performance over the past few years, as well as how the rest of the insurance industry performed. As an investor, I find it beneficial to assess CASS’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
How Did CASS's Recent Performance Stack Up Against Its Past?
CASS's trailing twelve-month earnings (from 30 September 2019) of €119m has jumped 29% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 6.9%, indicating the rate at which CASS is growing has accelerated. What's enabled this growth? Let's see whether it is merely due to an industry uplift, or if Società Cattolica di Assicurazione - Società Cooperativa has experienced some company-specific growth.
In terms of returns from investment, Società Cattolica di Assicurazione - Società Cooperativa has fallen short of achieving a 20% return on equity (ROE), recording 6.5% instead. Furthermore, its return on assets (ROA) of 0.7% is below the IT Insurance industry of 1.1%, indicating Società Cattolica di Assicurazione - Società Cooperativa's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Società Cattolica di Assicurazione - Società Cooperativa’s debt level, has declined over the past 3 years from 1.5% to 1.2%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 20% to 30% over the past 5 years.
What does this mean?
Though Società Cattolica di Assicurazione - Società Cooperativa's past data is helpful, it is only one aspect of my investment thesis. While Società Cattolica di Assicurazione - Società Cooperativa 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 Società Cattolica di Assicurazione - Società Cooperativa to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for CASS’s future growth? Take a look at our free research report of analyst consensus for CASS’s outlook.
- Financial Health: Are CASS’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 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 firstname.lastname@example.org. 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.
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