Examining TINC Comm VA’s (EBR:TINC) 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 TINC’s latest performance announced on 31 December 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for TINC Comm. VA
Could TINC beat the long-term trend and outperform its industry?
TINC’s trailing twelve-month earnings (from 31 December 2017) of €17.30m has more than doubled from €7.85m in the prior year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 29.11%, indicating the rate at which TINC is growing has accelerated. What’s the driver of this growth? Well, let’s take a look at whether it is only owing to an industry uplift, or if TINC Comm. VA has experienced some company-specific growth.
Over the last couple of years, TINC Comm. VA increased its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Eyeballing growth from a sector-level, the BE capital markets industry has been growing its average earnings by double-digit 17.79% in the previous year, and 15.24% over the past five years. This shows that whatever tailwind the industry is profiting from, TINC Comm. VA is able to leverage this to its advantage.
In terms of returns from investment, TINC Comm. VA has not invested its equity funds well, leading to a 7.15% return on equity (ROE), below the sensible minimum of 20%. However, its return on assets (ROA) of 7.14% exceeds the BE Capital Markets industry of 5.11%, indicating TINC Comm. VA has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for TINC Comm. VA’s debt level, has declined over the past 3 years from 23.75% to 7.54%.
What does this mean?
Though TINC Comm. VA’s past data is helpful, it is only one aspect of my investment thesis. While TINC Comm. VA has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research TINC Comm. VA to get a more holistic view of the stock by looking at:
- Financial Health: Is TINC’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 2017. This may not be consistent with full year annual report figures.
To help readers see pass 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.