For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Tamedia AG's (VTX:TAMN) 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 Tamedia
Did TAMN's recent earnings growth beat the long-term trend and the industry?
TAMN's trailing twelve-month earnings (from 30 June 2019) of CHF110m has increased by 1.9% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -12%, indicating the rate at which TAMN is growing has accelerated. What's the driver of this growth? Let's see whether it is solely a result of industry tailwinds, or if Tamedia has seen some company-specific growth.
In terms of returns from investment, Tamedia has fallen short of achieving a 20% return on equity (ROE), recording 6.9% instead. Furthermore, its return on assets (ROA) of 3.9% is below the CH Media industry of 4.7%, indicating Tamedia's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Tamedia’s debt level, has declined over the past 3 years from 7.0% to 4.1%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 0.07% to 4.4% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Recent positive growth doesn’t necessarily mean it’s onwards and upwards for the company. I suggest you continue to research Tamedia 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 TAMN’s future growth? Take a look at our free research report of analyst consensus for TAMN’s outlook.
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Financial Health: Are TAMN’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.