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Should Sioen Industries NV's (EBR:SIOE) Recent Earnings Decline Worry You?

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Simply Wall St
·3-min read
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Measuring Sioen Industries NV's (ENXTBR:SIOE) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess SIOE's recent performance announced on 31 December 2019 and compare these figures to its historical trend and industry movements.

Check out our latest analysis for Sioen Industries

How Well Did SIOE Perform?

SIOE's trailing twelve-month earnings (from 31 December 2019) of €27m has declined by -19% compared to the previous year.

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 9.1%, indicating the rate at which SIOE is growing has slowed down. What could be happening here? Let's examine what's transpiring with margins and if the rest of the industry is feeling the heat.

ENXTBR:SIOE Income Statement April 27th 2020
ENXTBR:SIOE Income Statement April 27th 2020

In terms of returns from investment, Sioen Industries has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 6.0% exceeds the BE Luxury industry of 5.2%, indicating Sioen Industries has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Sioen Industries’s debt level, has declined over the past 3 years from 16% to 10%.

What does this mean?

Sioen Industries's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. I recommend you continue to research Sioen Industries to get a more holistic view of the stock by looking at:

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

  2. Financial Health: Are SIOE’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 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.

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. Thank you for reading.