Yahoo Finance Does Rai Way S.p.A.'s (BIT:RWAY) Past Performance Indicate A Stronger Future?
Assessing Rai Way S.p.A.'s (BIT:RWAY) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess RWAY's latest performance announced on 31 December 2019 and evaluate these figures to its historical trend and industry movements.
Check out our latest analysis for Rai Way
How Well Did RWAY Perform?
RWAY's trailing twelve-month earnings (from 31 December 2019) of €63m has increased by 6.1% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 16%, indicating the rate at which RWAY is growing has slowed down. Why could this be happening? Well, let's examine what's transpiring with margins and if the whole industry is feeling the heat.
In terms of returns from investment, Rai Way has invested its equity funds well leading to a 34% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 19% exceeds the IT Media industry of 3.7%, indicating Rai Way has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Rai Way’s debt level, has increased over the past 3 years from 28% to 37%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 53% to 0.2% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Rai Way to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for RWAY’s future growth? Take a look at our free research report of analyst consensus for RWAY’s outlook.
Financial Health: Are RWAY’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 2019. This may not be consistent with full year annual report figures.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.
