Yahoo Finance Was Moncler S.p.A.'s (BIT:MONC) Earnings Growth Better Than The Industry's?
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Examining how Moncler S.p.A. (BIT:MONC) is performing as a company requires looking at more than just a years' earnings. Below, I will run you through a simple sense check to build perspective on how Moncler is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its luxury industry peers.
Check out our latest analysis for Moncler
Commentary On MONC's Past Performance
MONC's trailing twelve-month earnings (from 31 December 2018) of €332m has jumped 33% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 23%, indicating the rate at which MONC 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 Moncler has seen some company-specific growth.
In terms of returns from investment, Moncler has invested its equity funds well leading to a 31% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 20% exceeds the IT Luxury industry of 9.1%, indicating Moncler has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Moncler’s debt level, has declined over the past 3 years from 35% to 33%.
What does this mean?
Though Moncler's past data is helpful, it is only one aspect of my investment thesis. While Moncler 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 Moncler to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for MONC’s future growth? Take a look at our free research report of analyst consensus for MONC’s outlook.
Financial Health: Are MONC’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.
