AS VEF (MUN:UIJ): Has Recent Earnings Growth Beaten Long-Term Trend?
When AS VEF (MUN:UIJ) announced its most recent earnings (31 March 2019), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how AS VEF performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see UIJ has performed.
View our latest analysis for AS VEF
How Well Did UIJ Perform?
UIJ's trailing twelve-month earnings (from 31 March 2019) of €241k has increased by 4.6% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 52%, indicating the rate at which UIJ is growing has slowed down. Why could this be happening? Well, let's examine what's transpiring with margins and if the rest of the industry is feeling the heat.
In terms of returns from investment, AS VEF has fallen short of achieving a 20% return on equity (ROE), recording 7.1% instead. However, its return on assets (ROA) of 5.9% exceeds the DE Real Estate industry of 5.7%, indicating AS VEF has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for AS VEF’s debt level, has increased over the past 3 years from 3.9% to 6.0%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 120% to 72% over the past 5 years.
What does this mean?
Though AS VEF's past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as AS VEF gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research AS VEF to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for UIJ’s future growth? Take a look at our free research report of analyst consensus for UIJ’s outlook.
Financial Health: Are UIJ’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 March 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 editorial-team@simplywallst.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.
