Measuring Valmet Oyj's (HEL:VALMT) track record of past performance is a valuable exercise for investors. It allows 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 VALMT's recent performance announced on 30 June 2019 and compare these figures to its historical trend and industry movements.
Commentary On VALMT's Past Performance
VALMT's trailing twelve-month earnings (from 30 June 2019) of €178m has jumped 50% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 34%, indicating the rate at which VALMT is growing has accelerated. What's enabled this growth? Well, let’s take a look at if it is only owing to an industry uplift, or if Valmet Oyj has seen some company-specific growth.
In terms of returns from investment, Valmet Oyj has fallen short of achieving a 20% return on equity (ROE), recording 20% instead. Furthermore, its return on assets (ROA) of 5.7% is below the FI Machinery industry of 6.0%, indicating Valmet Oyj's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Valmet Oyj’s debt level, has increased over the past 3 years from 12% to 19%.
What does this mean?
Valmet Oyj'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? You should continue to research Valmet Oyj to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for VALMT’s future growth? Take a look at our free research report of analyst consensus for VALMT’s outlook.
- Financial Health: Are VALMT’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 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 email@example.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.