Does Kemira Oyj's (HEL:KEMIRA) Past Performance Indicate A Stronger Future?
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When Kemira Oyj (HEL:KEMIRA) released its most recent earnings update (31 March 2019), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how Kemira Oyj performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see KEMIRA has performed.
See our latest analysis for Kemira Oyj
Did KEMIRA beat its long-term earnings growth trend and its industry?
KEMIRA's trailing twelve-month earnings (from 31 March 2019) of €96m has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which KEMIRA is growing has accelerated. What's enabled this growth? Well, let’s take a look at if it is only due to an industry uplift, or if Kemira Oyj has seen some company-specific growth.
In terms of returns from investment, Kemira Oyj has fallen short of achieving a 20% return on equity (ROE), recording 8.9% instead. Furthermore, its return on assets (ROA) of 4.1% is below the FI Chemicals industry of 5.8%, indicating Kemira Oyj's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Kemira Oyj’s debt level, has increased over the past 3 years from 7.7% to 8.1%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Kemira Oyj has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Kemira Oyj to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for KEMIRA’s future growth? Take a look at our free research report of analyst consensus for KEMIRA’s outlook.
Financial Health: Are KEMIRA’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.
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 March 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.
