Yahoo Finance Proximus PLC (EBR:PROX): Did It Outperform The Industry?
After reading Proximus PLC's (ENXTBR:PROX) latest earnings update (30 September 2019), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether PROX has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways.
Check out our latest analysis for Proximus
Did PROX's recent earnings growth beat the long-term trend and the industry?
PROX's trailing twelve-month earnings (from 30 September 2019) of €527m has increased by 1.3% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -2.8%, indicating the rate at which PROX is growing has accelerated. What's the driver of this growth? Let's take a look at if it is solely a result of an industry uplift, or if Proximus has seen some company-specific growth.
In terms of returns from investment, Proximus has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 6.3% exceeds the BE Telecom industry of 4.8%, indicating Proximus has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Proximus’s debt level, has declined over the past 3 years from 16% to 12%.
What does this mean?
Though Proximus'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 recommend you continue to research Proximus to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for PROX’s future growth? Take a look at our free research report of analyst consensus for PROX’s outlook.
Financial Health: Are PROX’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 30 September 2019. This may not be consistent with full year annual report figures.
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