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Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Martela Oyj’s (HLSE:MARAS) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Martela Oyj

Despite a decline, did MARAS underperform the long-term trend and the industry?

For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This blend allows me to examine various companies on a similar basis, using the most relevant data points. For Martela Oyj, its most recent bottom-line (trailing twelve month) is -€636.00K, which, relative to the prior year’s figure, has turned from positive to negative. Since these figures may be somewhat nearsighted, I’ve estimated an annualized five-year value for Martela Oyj’s net income, which stands at €106.68K.

We can further examine Martela Oyj’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Martela Oyj’s revenue growth has been somewhat soft, with an annual growth rate of -0.96%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Eyeballing growth from a sector-level, the FI commercial services industry has been enduring some headwinds over the past year, leading to an average earnings drop of -3.90%. This is a momentous change, given that the industry has been delivering a positive rate of 6.41%, on average, over the previous five years. This means any recent headwind the industry is experiencing, it’s hitting Martela Oyj harder than its peers.

What does this mean?

Though Martela Oyj’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most useful step is to assess company-specific issues Martela Oyj may be facing and whether management guidance has steadily been met in the past. You should continue to research Martela Oyj to get a better picture of the stock by looking at:

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

• 2. Financial Health: Is MARAS’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 2017. 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.