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Want To Invest In Savencia SA (EPA:SAVE)? Here's How It Performed Lately

For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Savencia SA's (ENXTPA:SAVE) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.

Check out our latest analysis for Savencia

How Well Did SAVE Perform?

SAVE's trailing twelve-month earnings (from 31 December 2019) of €74m has jumped 34% 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 SAVE is growing has accelerated. What's the driver of this growth? Let's take a look at whether it is only owing to an industry uplift, or if Savencia has seen some company-specific growth.

ENXTPA:SAVE Income Statement April 3rd 2020
ENXTPA:SAVE Income Statement April 3rd 2020

In terms of returns from investment, Savencia has fallen short of achieving a 20% return on equity (ROE), recording 5.1% instead. Furthermore, its return on assets (ROA) of 2.4% is below the FR Food industry of 3.6%, indicating Savencia's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Savencia’s debt level, has declined over the past 3 years from 11% to 6.7%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Savencia 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 Savencia to get a better picture of the stock by looking at:

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

  2. Financial Health: Are SAVE’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.