Yahoo Finance Where Elton International Trading Company S.A.’s (ATH:ELTON) Earnings Growth Stands Against Its Industry
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Elton International Trading Company S.A.’s (ATH:ELTON) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.
View our latest analysis for Elton International Trading
Was ELTON weak performance lately part of a long-term decline?
ELTON’s trailing twelve-month earnings (from 30 June 2018) of €2.8m has declined by -14% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of -4.8%, indicating the rate at which ELTON is growing has slowed down. Why could this be happening? Let’s examine what’s occurring with margins and whether the entire industry is experiencing the hit as well.
In terms of returns from investment, Elton International Trading has fallen short of achieving a 20% return on equity (ROE), recording 5.4% instead. Furthermore, its return on assets (ROA) of 4.0% is below the GR Trade Distributors industry of 5.9%, indicating Elton International Trading’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Elton International Trading’s debt level, has declined over the past 3 years from 11% to 9.5%. This correlates with an increase in debt holding, with debt-to-equity ratio rising from 41% to 49% over the past 5 years.
What does this mean?
Elton International Trading’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. In some cases, companies that experience a drawn out period of diminishing earnings are undergoing some sort of reinvestment phase in order to keep up with the recent industry disruption and growth. I suggest you continue to research Elton International Trading to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ELTON’s future growth? Take a look at our free research report of analyst consensus for ELTON’s outlook.
Financial Health: Are ELTON’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 June 2018. 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.
