Yahoo Finance How Does Fourlis Holdings SA’s (ATH:FOYRK) Earnings Growth Stack Up Against Industry Performance?
Assessing Fourlis Holdings SA’s (ATH:FOYRK) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how Fourlis Holdings is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its specialty retail industry peers. See our latest analysis for Fourlis Holdings
Did FOYRK’s recent earnings growth beat the long-term trend and the industry?
FOYRK recently turned a profit of €11.04m (most recent trailing twelve-months) compared to its average loss of -€95.86k over the past five years.
Over the last couple of years, Fourlis Holdings expanded its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Eyeballing growth from a sector-level, the GR specialty retail industry has been relatively flat in terms of earnings growth over the previous twelve months, levelling off from a robust 20.51% over the previous five years. This shows that whatever near-term headwind the industry is experiencing, the impact on Fourlis Holdings has been softer relative to its peers.
In terms of returns from investment, Fourlis Holdings has not invested its equity funds well, leading to a 6.67% return on equity (ROE), below the sensible minimum of 20%. However, its return on assets (ROA) of 4.12% exceeds the GR Specialty Retail industry of 4.11%, indicating Fourlis Holdings has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Fourlis Holdings’s debt level, has increased over the past 3 years from -1.34% to 5.26%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 103.88% to 92.02% over the past 5 years.
What does this mean?
Fourlis Holdings’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 Fourlis Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Fourlis Holdings to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for FOYRK’s future growth? Take a look at our free research report of analyst consensus for FOYRK’s outlook.
Financial Health: Is FOYRK’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 March 2018. 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.
