Yahoo Finance Did GL Events SA's (EPA:GLO) Recent Earnings Growth Beat The Trend?
When GL Events SA (ENXTPA:GLO) released its most recent earnings update (31 December 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well GL Events has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see GLO has performed.
See our latest analysis for GL Events
How Well Did GLO Perform?
GLO's trailing twelve-month earnings (from 31 December 2019) of €55m has jumped 30% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 13%, indicating the rate at which GLO is growing has accelerated. What's the driver of this growth? Well, let’s take a look at if it is merely attributable to an industry uplift, or if GL Events has experienced some company-specific growth.
In terms of returns from investment, GL Events has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. Furthermore, its return on assets (ROA) of 2.6% is below the FR Commercial Services industry of 3.2%, indicating GL Events's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for GL Events’s debt level, has declined over the past 3 years from 8.3% to 8.0%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 129% to 136% over the past 5 years.
What does this mean?
Though GL Events's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as GL Events gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research GL Events to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for GLO’s future growth? Take a look at our free research report of analyst consensus for GLO’s outlook.
Financial Health: Are GLO’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 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 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.
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