Measuring Uponor Oyj’s (HEL:UPONOR) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess UPONOR’s recent performance announced on 30 September 2018 and compare these figures to its historical trend and industry movements.
See our latest analysis for Uponor Oyj
How Well Did UPONOR Perform?
UPONOR’s trailing twelve-month earnings (from 30 September 2018) of €60m has increased by 9.9% 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 15%, indicating the rate at which UPONOR is growing has slowed down. What could be happening here? Well, let’s examine what’s transpiring with margins and whether the rest of the industry is experiencing the hit as well.
In terms of returns from investment, Uponor Oyj has fallen short of achieving a 20% return on equity (ROE), recording 19% instead. However, its return on assets (ROA) of 7.7% exceeds the FI Building industry of 5.0%, indicating Uponor Oyj has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Uponor Oyj’s debt level, has declined over the past 3 years from 14% to 14%.
What does this mean?
Though Uponor Oyj’s past data is helpful, it is only one aspect of my investment thesis. While Uponor Oyj has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Uponor Oyj to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for UPONOR’s future growth? Take a look at our free research report of analyst consensus for UPONOR’s outlook.
- Financial Health: Are UPONOR’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 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.