U.S. markets closed
  • S&P 500

    3,298.46
    +51.87 (+1.60%)
     
  • Dow 30

    27,173.96
    +358.52 (+1.34%)
     
  • Nasdaq

    10,913.56
    +241.29 (+2.26%)
     
  • Russell 2000

    1,474.91
    +23.09 (+1.59%)
     
  • Crude Oil

    40.04
    -0.27 (-0.67%)
     
  • Gold

    1,864.30
    -12.60 (-0.67%)
     
  • Silver

    22.99
    -0.21 (-0.91%)
     
  • EUR/USD

    1.1639
    -0.0037 (-0.31%)
     
  • 10-Yr Bond

    0.6590
    -0.0070 (-1.05%)
     
  • GBP/USD

    1.2744
    -0.0007 (-0.06%)
     
  • USD/JPY

    105.5590
    +0.1570 (+0.15%)
     
  • BTC-USD

    10,698.89
    -61.70 (-0.57%)
     
  • CMC Crypto 200

    230.19
    +12.36 (+5.67%)
     
  • FTSE 100

    5,842.67
    +19.89 (+0.34%)
     
  • Nikkei 225

    23,204.62
    +116.80 (+0.51%)
     

Did Piraeus Port Authority S.A.'s (ATH:PPA) Recent Earnings Growth Beat The Trend?

Simply Wall St

When Piraeus Port Authority S.A.'s (ATSE:PPA) announced its latest earnings (31 December 2019), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Piraeus Port Authority's average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not PPA actually performed well. Below is a quick commentary on how I see PPA has performed.

Check out our latest analysis for Piraeus Port Authority

Did PPA beat its long-term earnings growth trend and its industry?

PPA's trailing twelve-month earnings (from 31 December 2019) of €35m has jumped 27% 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 39%, indicating the rate at which PPA is growing has slowed down. What could be happening here? Well, let's examine what's occurring with margins and whether the entire industry is feeling the heat.

ATSE:PPA Income Statement April 14th 2020
ATSE:PPA Income Statement April 14th 2020

In terms of returns from investment, Piraeus Port Authority has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 8.1% exceeds the GR Infrastructure industry of 5.8%, indicating Piraeus Port Authority has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Piraeus Port Authority’s debt level, has increased over the past 3 years from 3.3% to 12%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 51% to 24% over the past 5 years.

What does this mean?

Piraeus Port Authority's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Piraeus Port Authority to get a more holistic view of the stock by looking at:

  1. Financial Health: Are PPA’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.

  2. Valuation: What is PPA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PPA is currently mispriced by the market.

  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 2019. This may not be consistent with full year annual report figures.

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.

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. Thank you for reading.