Yahoo Finance Interested In Barco NV (EBR:BAR)? Here’s What Its Recent Performance Looks Like
Assessing Barco NV’s (EBR:BAR) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess BAR’s latest performance announced on 31 December 2017 and evaluate these figures to its historical trend and industry movements. Check out our latest analysis for Barco
Could BAR beat the long-term trend and outperform its industry?
BAR’s trailing twelve-month earnings (from 31 December 2017) of €24.78m has more than doubled from €11.02m in the prior year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -36.92%, indicating the rate at which BAR is growing has accelerated. How has it been able to do this? Let’s take a look at whether it is merely a result of industry tailwinds, or if Barco has experienced some company-specific growth.
Though both top-line and bottom-line growth rates in the last couple of years were on average negative, earnings were more so. While this brought about a margin contraction, it has lessened Barco’s earnings contraction. Inspecting growth from a sector-level, the BE electronic industry has been growing its average earnings by double-digit 19.02% over the prior twelve months, and 10.35% over the past five years. This suggests that any uplift the industry is deriving benefit from, Barco is capable of amplifying this to its advantage.
In terms of returns from investment, Barco has not invested its equity funds well, leading to a 5.52% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 2.10% is below the BE Electronic industry of 6.29%, indicating Barco’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Barco’s debt level, has increased over the past 3 years from 4.61% to 10.41%.
What does this mean?
Though Barco’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. There could be factors that are impacting the industry as a whole, thus the high industry growth rate over the same time frame. I suggest you continue to research Barco to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BAR’s future growth? Take a look at our free research report of analyst consensus for BAR’s outlook.
Financial Health: Is BAR’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 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
