Assessing Ingenico Group - GCS's (EPA:ING) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess ING's recent performance announced on 30 June 2019 and evaluate these figures to its longer term trend and industry movements.
How Well Did ING Perform?
ING's trailing twelve-month earnings (from 30 June 2019) of €214m has jumped 21% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.5%, indicating the rate at which ING is growing has accelerated. What's enabled this growth? Let's take a look at if it is solely because of industry tailwinds, or if Ingenico Group - GCS has seen some company-specific growth.
In terms of returns from investment, Ingenico Group - GCS has fallen short of achieving a 20% return on equity (ROE), recording 9.2% instead. Furthermore, its return on assets (ROA) of 3.3% is below the FR Electronic industry of 4.0%, indicating Ingenico Group - GCS's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Ingenico Group - GCS’s debt level, has declined over the past 3 years from 14% to 7.5%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 109% to 111% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Ingenico Group - GCS 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 Ingenico Group - GCS to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ING’s future growth? Take a look at our free research report of analyst consensus for ING’s outlook.
- Financial Health: Are ING’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 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.