Where Toscana Aeroporti S.p.A.’s (BIT:TYA) Earnings Growth Stands Against Its Industry

Examining Toscana Aeroporti S.p.A.’s (BIT:TYA) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess TYA’s latest performance announced on 31 December 2019 and weigh these figures against its longer term trend and industry movements.

See our latest analysis for Toscana Aeroporti

Commentary On TYA’s Past Performance

TYA’s trailing twelve-month earnings (from 31 December 2019) of €14m has declined by -3.1% 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 18%, indicating the rate at which TYA is growing has slowed down. What could be happening here? Let’s examine what’s going on with margins and whether the entire industry is experiencing the hit as well.

BIT:TYA Income Statement March 26th 2020
BIT:TYA Income Statement March 26th 2020

In terms of returns from investment, Toscana Aeroporti has fallen short of achieving a 20% return on equity (ROE), recording 12% instead. However, its return on assets (ROA) of 5.9% exceeds the IT Infrastructure industry of 4.7%, indicating Toscana Aeroporti has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Toscana Aeroporti’s debt level, has increased over the past 3 years from 7.6% to 12%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors influencing its business. I suggest you continue to research Toscana Aeroporti to get a better picture of the stock by looking at:

  1. Financial Health: Are TYA’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.
  2. Valuation: What is TYA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TYA is currently mispriced by the market.
  3. 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.

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.

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