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 IMA Industria Macchine Automatiche SpA’s (BIT:IMA) 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 I.M.A. Industria Macchine Automatiche
Commentary On IMA’s Past Performance
IMA’s trailing twelve-month earnings (from 30 September 2018) of €99m has jumped 21% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 18%, indicating the rate at which IMA is growing has accelerated. What’s enabled this growth? Let’s see if it is only a result of an industry uplift, or if I.M.A. Industria Macchine Automatiche has seen some company-specific growth.
In terms of returns from investment, I.M.A. Industria Macchine Automatiche has invested its equity funds well leading to a 31% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 6.3% exceeds the IT Machinery industry of 3.7%, indicating I.M.A. Industria Macchine Automatiche has used its assets more efficiently. However, its return on capital (ROC), which also accounts for I.M.A. Industria Macchine Automatiche’s debt level, has declined over the past 3 years from 20% to 20%.
What does this mean?
Though I.M.A. Industria Macchine Automatiche’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research I.M.A. Industria Macchine Automatiche 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 IMA’s future growth? Take a look at our free research report of analyst consensus for IMA’s outlook.
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Financial Health: Are IMA’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 September 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.