Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
After looking at Altia Oyj's (HEL:ALTIA) latest earnings announcement (31 December 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Altia Oyj's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
See our latest analysis for Altia Oyj
How Well Did ALTIA Perform?
ALTIA's trailing twelve-month earnings (from 31 December 2018) of €15m has declined by -17% 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 29%, indicating the rate at which ALTIA is growing has slowed down. Why could this be happening? Well, let's look at what's going on with margins and whether the entire industry is experiencing the hit as well.
In terms of returns from investment, Altia Oyj has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. Furthermore, its return on assets (ROA) of 4.3% is below the FI Beverage industry of 5.6%, indicating Altia Oyj's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Altia Oyj’s debt level, has increased over the past 3 years from 7.8% to 8.4%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 113% to 60% over the past 5 years.
What does this mean?
Though Altia Oyj's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I suggest you continue to research Altia Oyj to get a better picture of the stock by looking at:
-
Future Outlook: What are well-informed industry analysts predicting for ALTIA’s future growth? Take a look at our free research report of analyst consensus for ALTIA’s outlook.
-
Financial Health: Are ALTIA’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.