Yahoo Finance Interested In Public Joint Stock Company Long-Distance and International Telecommunications Rostelecom (MCX:RTKM)? Here’s What Its Recent Performance Looks Like
Understanding how Public Joint Stock Company Long-Distance and International Telecommunications Rostelecom (MCX:RTKM) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Long-Distance and International Telecommunications Rostelecom is doing by comparing its latest earnings with its long-term trend as well as the performance of its telecom industry peers. Check out our latest analysis for Long-Distance and International Telecommunications Rostelecom
Were RTKM’s earnings stronger than its past performances and the industry?
RTKM’s trailing twelve-month earnings (from 31 March 2018) of RUруб14.35b has jumped 20.55% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -21.62%, indicating the rate at which RTKM is growing has accelerated. How has it been able to do this? Let’s see if it is only owing to industry tailwinds, or if Long-Distance and International Telecommunications Rostelecom has seen some company-specific growth.
In the last couple of years, Long-Distance and International Telecommunications Rostelecom top-line expansion has outstripped earnings and the growth rate of expenses. Though this brought about a margin contraction, it has cushioned Long-Distance and International Telecommunications Rostelecom’s earnings contraction. Inspecting growth from a sector-level, the RU telecom industry has been growing, albeit, at a unexciting single-digit rate of 6.09% over the prior twelve months, . This is a turnaround from a volatile drop of -6.93% in the past couple of years. This means that, in the recent industry expansion, Long-Distance and International Telecommunications Rostelecom is capable of leveraging this to its advantage.
In terms of returns from investment, Long-Distance and International Telecommunications Rostelecom has not invested its equity funds well, leading to a 5.79% return on equity (ROE), below the sensible minimum of 20%. However, its return on assets (ROA) of 5.10% exceeds the RU Telecom industry of 4.23%, indicating Long-Distance and International Telecommunications Rostelecom has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Long-Distance and International Telecommunications Rostelecom’s debt level, has declined over the past 3 years from 5.54% to 3.17%.
What does this mean?
Long-Distance and International Telecommunications Rostelecom’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Recent positive growth isn’t always indicative of a continued optimistic outlook. There may be variables that are influencing the entire industry thus the high industry growth rate over the same period of time. I suggest you continue to research Long-Distance and International Telecommunications Rostelecom to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for RTKM’s future growth? Take a look at our free research report of analyst consensus for RTKM’s outlook.
Financial Health: Is RTKM’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 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass 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.
