Measuring Qiwi plc’s (NASDAQ:QIWI) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess QIWI’s recent performance announced on 30 June 2018 and weigh these figures against its long-term trend and industry movements.
Did QIWI’s recent earnings growth beat the long-term trend and the industry?
QIWI’s trailing twelve-month earnings (from 30 June 2018) of RUруб3.1b has jumped 14% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 3.1%, indicating the rate at which QIWI is growing has accelerated. How has it been able to do this? Well, let’s take a look at if it is merely owing to industry tailwinds, or if Qiwi has experienced some company-specific growth.
In terms of returns from investment, Qiwi has fallen short of achieving a 20% return on equity (ROE), recording 13% instead. Furthermore, its return on assets (ROA) of 6.5% is below the US IT industry of 6.7%, indicating Qiwi’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Qiwi’s debt level, has declined over the past 3 years from 33% to 17%.
What does this mean?
Though Qiwi’s past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn’t always indicative of a continued optimistic outlook. There may be factors that are impacting the industry as a whole, hence the high industry growth rate over the same time frame. You should continue to research Qiwi to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for QIWI’s future growth? Take a look at our free research report of analyst consensus for QIWI’s outlook.
- Financial Health: Are QIWI’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 30 June 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 email@example.com.