Yahoo Finance Should You Be Happy With Total Produce plc’s (ISE:T7O) Performance Lately?
Understanding Total Produce plc’s (ISE:T7O) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Total Produce is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period.
See our latest analysis for Total Produce
Did T7O’s recent earnings growth beat the long-term trend and the industry?
T7O’s trailing twelve-month earnings (from 31 December 2017) of €47.8m has jumped 67.6% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 9.3%, indicating the rate at which T7O is growing has accelerated. What’s enabled this growth? Well, let’s take a look at whether it is only a result of an industry uplift, or if Total Produce has experienced some company-specific growth.
Over the past few years, Total Produce grew its bottom line faster than revenue by effectively controlling its costs. This resulted in a margin expansion and profitability over time. Inspecting growth from a sector-level, the IE consumer retailing industry has been
In terms of returns from investment, Total Produce has fallen short of achieving a 20% return on equity (ROE), recording 18.1% instead.
What does this mean?
Though Total Produce’s past data is helpful, it is only one aspect of my investment thesis. While Total Produce has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Total Produce to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for T7O’s future growth? Take a look at our free research report of analyst consensus for T7O’s outlook.
Financial Health: Are T7O’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 past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
