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Assessing Revenio Group Oyj’s (HEL:REG1V) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess REG1V’s recent performance announced on 30 September 2018 and evaluate these figures to its longer term trend and industry movements.
Check out our latest analysis for Revenio Group Oyj
Were REG1V’s earnings stronger than its past performances and the industry?
REG1V’s trailing twelve-month earnings (from 30 September 2018) of €7.6m has jumped 12% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 19%, indicating the rate at which REG1V is growing has slowed down. What could be happening here? Well, let’s examine what’s going on with margins and whether the whole industry is feeling the heat.
In terms of returns from investment, Revenio Group Oyj has invested its equity funds well leading to a 48% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 38% exceeds the FI Medical Equipment industry of 8.8%, indicating Revenio Group Oyj has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Revenio Group Oyj’s debt level, has increased over the past 3 years from 40% to 56%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 10% to 1.9% over the past 5 years.
What does this mean?
Revenio Group Oyj’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 Revenio Group Oyj gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Revenio Group Oyj to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for REG1V’s future growth? Take a look at our free research report of analyst consensus for REG1V’s outlook.
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Financial Health: Are REG1V’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.