Does Fujairah Building Industries P.J.S.C's (ADX:FBI) Statutory Profit Adequately Reflect Its Underlying Profit?

It might be old fashioned, but we really like to invest in companies that make a profit, each and every year. Having said that, sometimes statutory profit levels are not a good guide to ongoing profitability, because some short term one-off factor has impacted profit levels. In this article, we'll look at how useful this year's statutory profit is, when analysing Fujairah Building Industries P.J.S.C (ADX:FBI).

We like the fact that Fujairah Building Industries P.J.S.C made a profit of د.إ40.0m on its revenue of د.إ190.5m, in the last year. As depicted below, while its revenue may have fallen over the last few years, its profit actually improved.

Check out our latest analysis for Fujairah Building Industries P.J.S.C

Of course, when it comes to statutory profit, the devil is often in the detail, and we can get a better sense for a company by diving deeper into the financial statements. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Fujairah Building Industries P.J.S.C.

Our Take On Fujairah Building Industries P.J.S.C's Profit Performance

Therefore, it seems possible to us that Fujairah Building Industries P.J.S.C's true underlying earnings power is actually less than its statutory profit. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. For example, we've discovered 2 warning signs that you should run your eye over to get a better picture of Fujairah Building Industries P.J.S.C.

Our examination of Fujairah Building Industries P.J.S.C has focussed on certain factors that can make its earnings look better than they are. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks that insiders are buying.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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