Yahoo Finance Has Tomra Systems ASA (OB:TOM) Improved Earnings Growth In Recent Times?
Understanding Tomra Systems ASA's (OB:TOM) 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 Tomra Systems 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 Tomra Systems
Commentary On TOM's Past Performance
TOM's trailing twelve-month earnings (from 30 September 2019) of kr789m has jumped 19% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which TOM is growing has accelerated. What's the driver of this growth? Let's see whether it is solely attributable to an industry uplift, or if Tomra Systems has seen some company-specific growth.
In terms of returns from investment, Tomra Systems has fallen short of achieving a 20% return on equity (ROE), recording 16% instead. However, its return on assets (ROA) of 7.5% exceeds the NO Commercial Services industry of 4.9%, indicating Tomra Systems has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Tomra Systems’s debt level, has declined over the past 3 years from 19% to 12%.
What does this mean?
Though Tomra Systems'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? You should continue to research Tomra Systems to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for TOM’s future growth? Take a look at our free research report of analyst consensus for TOM’s outlook.
Financial Health: Are TOM’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.
