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 QPR Software Oyj’s (HEL:QPR1V) 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.
How QPR1V fared against its long-term earnings performance and its industry
QPR1V’s trailing twelve-month earnings (from 30 September 2018) of €530k has jumped 15% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -16%, indicating the rate at which QPR1V is growing has accelerated. How has it been able to do this? Let’s take a look at whether it is solely due to industry tailwinds, or if QPR Software Oyj has experienced some company-specific growth.
In terms of returns from investment, QPR Software Oyj has fallen short of achieving a 20% return on equity (ROE), recording 19% instead. However, its return on assets (ROA) of 9.7% exceeds the FI Software industry of 6.6%, indicating QPR Software Oyj has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for QPR Software Oyj’s debt level, has declined over the past 3 years from 25% to 21%.
What does this mean?
Though QPR Software Oyj’s past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn’t always indicative of a continued optimistic outlook. There may be factors that are impacting the entire industry thus the high industry growth rate over the same time frame. I recommend you continue to research QPR Software Oyj to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for QPR1V’s future growth? Take a look at our free research report of analyst consensus for QPR1V’s outlook.
- Financial Health: Are QPR1V’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 email@example.com.