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CapitaLand Investment Limited's (SGX:9CI) strong earnings report was rewarded with a positive stock price move. Our analysis found some more factors that we think are good for shareholders.
Check out our latest analysis for CapitaLand Investment
The Impact Of Unusual Items On Profit
Importantly, our data indicates that CapitaLand Investment's profit was reduced by S$152m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect CapitaLand Investment to produce a higher profit next year, all else being equal.
That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.
Our Take On CapitaLand Investment's Profit Performance
Unusual items (expenses) detracted from CapitaLand Investment's earnings over the last year, but we might see an improvement next year. Because of this, we think CapitaLand Investment's earnings potential is at least as good as it seems, and maybe even better! Furthermore, it has done a great job growing EPS over the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. If you'd like to know more about CapitaLand Investment as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 1 warning sign with CapitaLand Investment, and understanding it should be part of your investment process.
Today we've zoomed in on a single data point to better understand the nature of CapitaLand Investment's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.