Stock Analysis

Interested In Mediaset España Comunicación, S.A. (BME:TL5)? Here's How It Performed Recently

  •  Updated
BME:TL5
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For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Mediaset España Comunicación, S.A.'s (BME:TL5) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.

See our latest analysis for Mediaset España Comunicación

How Well Did TL5 Perform?

TL5's trailing twelve-month earnings (from 31 December 2018) of €200m has increased by 1.4% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 31%, indicating the rate at which TL5 is growing has slowed down. Why could this be happening? Well, let's look at what's occurring with margins and whether the rest of the industry is feeling the heat.

BME:TL5 Income Statement, March 4th 2019
BME:TL5 Income Statement, March 4th 2019

In terms of returns from investment, Mediaset España Comunicación has invested its equity funds well leading to a 22% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 17% exceeds the ES Media industry of 4.5%, indicating Mediaset España Comunicación has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Mediaset España Comunicación’s debt level, has increased over the past 3 years from 18% to 27%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 0.05% to 0.004% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Mediaset España Comunicación gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Mediaset España Comunicación to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for TL5’s future growth? Take a look at our free research report of analyst consensus for TL5’s outlook.
  2. Financial Health: Are TL5’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.
  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 2018. 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.

About BME:TL5

Mediaset España Comunicación

Mediaset España Comunicación, S.A., together with its subsidiaries, engages in the television broadcasting business in Spain.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation5
Future Growth0
Past Performance2
Financial Health5
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Undervalued with excellent balance sheet.