Yahoo Finance Did Nokian Renkaat Oyj's (HEL:TYRES) Recent Earnings Growth Beat The Trend?
Examining Nokian Renkaat Oyj's (HLSE:TYRES) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess TYRES's latest performance announced on 30 September 2019 and weigh these figures against its longer term trend and industry movements.
Check out our latest analysis for Nokian Renkaat Oyj
Could TYRES beat the long-term trend and outperform its industry?
TYRES's trailing twelve-month earnings (from 30 September 2019) of €415m has jumped 41% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 13%, indicating the rate at which TYRES is growing has accelerated. How has it been able to do this? Let's see whether it is solely owing to industry tailwinds, or if Nokian Renkaat Oyj has experienced some company-specific growth.
In terms of returns from investment, Nokian Renkaat Oyj has invested its equity funds well leading to a 25% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the FI Auto Components industry of 5.1%, indicating Nokian Renkaat Oyj has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Nokian Renkaat Oyj’s debt level, has declined over the past 3 years from 20% to 17%.
What does this mean?
Though Nokian Renkaat Oyj's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Nokian Renkaat Oyj to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TYRES’s future growth? Take a look at our free research report of analyst consensus for TYRES’s outlook.
Financial Health: Are TYRES’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.
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.
