Wulff-Yhtiöt Oyj (HEL:WUF1V): Did It Outperform The Industry?
After looking at Wulff-Yhtiöt Oyj's (HLSE:WUF1V) latest earnings announcement (30 September 2019), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways.
See our latest analysis for Wulff-Yhtiöt Oyj
Did WUF1V perform better than its track record and industry?
WUF1V recently turned a profit of €858k (most recent trailing twelve-months) compared to its average loss of -€205.0k over the past five years.
In terms of returns from investment, Wulff-Yhtiöt Oyj has fallen short of achieving a 20% return on equity (ROE), recording 7.4% instead. Furthermore, its return on assets (ROA) of 2.7% is below the FI Retail Distributors industry of 6.1%, indicating Wulff-Yhtiöt Oyj's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Wulff-Yhtiöt Oyj’s debt level, has declined over the past 3 years from 9.7% to 7.8%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 81% to 93% over the past 5 years.
What does this mean?
Though Wulff-Yhtiöt Oyj'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 impacting its business. I recommend you continue to research Wulff-Yhtiöt Oyj to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for WUF1V’s future growth? Take a look at our free research report of analyst consensus for WUF1V’s outlook.
Financial Health: Are WUF1V’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 2019. This may not be consistent with full year annual report figures.
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