Assessing Lassila & Tikanoja Oyj's (HLSE:LAT1V) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess LAT1V's recent performance announced on 31 December 2019 and evaluate these figures to its long-term trend and industry movements.
Have LAT1V's earnings improved against past performances and the industry?
LAT1V's trailing twelve-month earnings (from 31 December 2019) of €35m has increased by 1.8% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -0.8%, indicating the rate at which LAT1V is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely due to industry tailwinds, or if Lassila & Tikanoja Oyj has seen some company-specific growth.
In terms of returns from investment, Lassila & Tikanoja Oyj has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 6.5% exceeds the FI Commercial Services industry of 4.8%, indicating Lassila & Tikanoja Oyj has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Lassila & Tikanoja Oyj’s debt level, has declined over the past 3 years from 16% to 9.5%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 47% to 49% over the past 5 years.
What does this mean?
Lassila & Tikanoja Oyj's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Lassila & Tikanoja Oyj gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Lassila & Tikanoja Oyj to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for LAT1V’s future growth? Take a look at our free research report of analyst consensus for LAT1V’s outlook.
- Financial Health: Are LAT1V’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 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 firstname.lastname@example.org. 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.
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