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Measuring Corticeira Amorim, S.G.P.S., S.A.'s (ELI:COR) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess COR's recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
How COR fared against its long-term earnings performance and its industry
COR's trailing twelve-month earnings (from 31 March 2019) of €77m has increased by 3.4% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 19%, indicating the rate at which COR is growing has slowed down. What could be happening here? Well, let’s take a look at what’s transpiring with margins and if the entire industry is experiencing the hit as well.
In terms of returns from investment, Corticeira Amorim S.G.P.S has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 8.1% exceeds the PT Packaging industry of 5.7%, indicating Corticeira Amorim S.G.P.S has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Corticeira Amorim S.G.P.S’s debt level, has declined over the past 3 years from 18% to 15%.
What does this mean?
Corticeira Amorim S.G.P.S's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Corticeira Amorim S.G.P.S has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research Corticeira Amorim S.G.P.S to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for COR’s future growth? Take a look at our free research report of analyst consensus for COR’s outlook.
- Financial Health: Are COR’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.
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.
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. Thank you for reading.