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Want To Invest In JM AB (publ) (STO:JM)? Here's How It Performed Lately

Simply Wall St

Examining JM AB (publ)'s (OM:JM) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess JM's latest performance announced on 30 September 2019 and weight these figures against its longer term trend and industry movements.

Check out our latest analysis for JM

Did JM perform worse than its track record and industry?

JM's trailing twelve-month earnings (from 30 September 2019) of kr1.5b has declined by -9.9% 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 6.2%, indicating the rate at which JM is growing has slowed down. Why is this? Well, let's look at what's occurring with margins and if the entire industry is feeling the heat.

OM:JM Income Statement, November 18th 2019

In terms of returns from investment, JM has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 6.9% exceeds the SE Consumer Durables industry of 5.9%, indicating JM has used its assets more efficiently. However, its return on capital (ROC), which also accounts for JM’s debt level, has declined over the past 3 years from 23% to 15%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 21% to 90% over the past 5 years.

What does this mean?

Though JM's past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. You should continue to research JM to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for JM’s future growth? Take a look at our free research report of analyst consensus for JM’s outlook.
  2. Financial Health: Are JM’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.
  3. 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 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.