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Wulff-Yhtiöt Oyj (HEL:WUF1V): Did It Outperform The Industry?

Simply Wall St

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.

HLSE:WUF1V Income Statement, December 4th 2019

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:

  1. 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.
  2. 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.
  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.

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.

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. Thank you for reading.