UK Markets close in 7 hrs 36 mins

Should You Be Happy With Bonduelle SA's (EPA:BON) Performance Lately?

Simply Wall St

After reading Bonduelle SA's (ENXTPA:BON) most recent earnings announcement (30 June 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Bonduelle's performance has been impacted by industry movements. In this article I briefly touch on my key findings.

See our latest analysis for Bonduelle

Have BON's earnings improved against past performances and the industry?

BON's trailing twelve-month earnings (from 30 June 2019) of €73m has increased by 0.3% 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 14%, indicating the rate at which BON is growing has slowed down. What could be happening here? Well, let’s take a look at what’s going on with margins and if the whole industry is experiencing the hit as well.

ENXTPA:BON Income Statement, October 25th 2019

In terms of returns from investment, Bonduelle has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 4.5% exceeds the FR Food industry of 3.7%, indicating Bonduelle has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Bonduelle’s debt level, has declined over the past 3 years from 11% to 9.0%.

What does this mean?

Bonduelle's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Bonduelle gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Bonduelle to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for BON’s future growth? Take a look at our free research report of analyst consensus for BON’s outlook.
  2. Financial Health: Are BON’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.
  3. 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 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.