Where Suez SA (EPA:SEV) Stands In Terms Of Earnings Growth Against Its Industry
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Measuring Suez SA's (EPA:SEV) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess SEV's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.
View our latest analysis for Suez
Commentary On SEV's Past Performance
SEV's trailing twelve-month earnings (from 31 December 2018) of €290m has increased by 8.2% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -5.8%, indicating the rate at which SEV is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is solely because of industry tailwinds, or if Suez has seen some company-specific growth.
In terms of returns from investment, Suez has fallen short of achieving a 20% return on equity (ROE), recording 6.3% instead. Furthermore, its return on assets (ROA) of 2.0% is below the FR Integrated Utilities industry of 4.0%, indicating Suez's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Suez’s debt level, has declined over the past 3 years from 6.0% to 5.1%.
What does this mean?
Though Suez's past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn't always indicative of a continued optimistic outlook. I suggest you continue to research Suez to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SEV’s future growth? Take a look at our free research report of analyst consensus for SEV’s outlook.
Financial Health: Are SEV’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 December 2018. 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 editorial-team@simplywallst.com. 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.
