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Measuring Masi Agricola S.p.A.'s (BIT:MASI) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess MASI's recent performance announced on 31 December 2018 and compare these figures to its historical trend and industry movements.
Did MASI's recent earnings growth beat the long-term trend and the industry?
MASI's trailing twelve-month earnings (from 31 December 2018) of €7.1m has increased by 5.1% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -6.0%, indicating the rate at which MASI is growing has accelerated. What's enabled this growth? Let's see whether it is solely a result of an industry uplift, or if Masi Agricola has seen some company-specific growth.
In terms of returns from investment, Masi Agricola has fallen short of achieving a 20% return on equity (ROE), recording 5.7% instead. Furthermore, its return on assets (ROA) of 4.6% is below the IT Beverage industry of 5.5%, indicating Masi Agricola's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Masi Agricola’s debt level, has declined over the past 3 years from 9.4% to 6.0%.
What does this mean?
Though Masi Agricola'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 could be factors that are impacting the industry as a whole, thus the high industry growth rate over the same period of time. I suggest you continue to research Masi Agricola to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MASI’s future growth? Take a look at our free research report of analyst consensus for MASI’s outlook.
- Financial Health: Are MASI’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 2018. 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.