In this article, I will take a look at HT&E Limited's (ASX:HT1) most recent earnings update (30 June 2019) and compare these latest figures against its performance over the past few years, along with how the rest of HT1's industry performed. As a long-term investor, I find it useful to analyze the company's trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.
Check out our latest analysis for HT&E
How Well Did HT1 Perform?
HT1 recently turned a profit of AU$36m (most recent trailing twelve-months) compared to its average loss of -AU$20.5m over the past five years.
In terms of returns from investment, HT&E has fallen short of achieving a 20% return on equity (ROE), recording 7.2% instead. Furthermore, its return on assets (ROA) of 4.3% is below the AU Media industry of 4.4%, indicating HT&E's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for HT&E’s debt level, has declined over the past 3 years from 11% to 8.3%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as HT&E gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research HT&E to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for HT1’s future growth? Take a look at our free research report of analyst consensus for HT1’s outlook.
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Financial Health: Are HT1’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.
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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 June 2019. 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.