How Has Telia Company AB (publ)’s (STO:TELIA) Performed Against The Industry?
Examining Telia Company AB (publ)’s (STO:TELIA) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess TELIA’s latest performance announced on 30 September 2018 and weigh these figures against its longer term trend and industry movements.
Check out our latest analysis for Telia Company
Did TELIA’s recent performance beat its trend and industry?
TELIA’s trailing twelve-month earnings (from 30 September 2018) of kr11.0b has declined by -1.3% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -9.6%, indicating the rate at which TELIA is growing has slowed down. What could be happening here? Well, let’s look at what’s occurring with margins and if the whole industry is facing the same headwind.
In terms of returns from investment, Telia Company has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. Furthermore, its return on assets (ROA) of 5.5% is below the SE Telecom industry of 5.5%, indicating Telia Company’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Telia Company’s debt level, has increased over the past 3 years from 4.2% to 6.7%.
What does this mean?
Telia Company’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. In some cases, companies that experience a drawn out period of reduction in earnings are going through some sort of reinvestment phase with the aim of keeping up with the latest industry growth and disruption. I suggest you continue to research Telia Company to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TELIA’s future growth? Take a look at our free research report of analyst consensus for TELIA’s outlook.
Financial Health: Are TELIA’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 September 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 editorial-team@simplywallst.com.
