Breaking Down TROC DE L’ILE SA’s (EPA:MLTRO) Ownership Structure

In this article, I will take a quick look at TROC DE L’ILE SA’s (ENXTPA:MLTRO) recent ownership structure – an unconventional investing subject, but an important one. A company’s ownership structure is often linked to its share performance in both the long- and short-term. Differences in ownership structure of companies can have a profound effect on how management’s incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices. Although this is an important factor for long-term investors, many investors can also be impacted by institutional presence and their high-volume trading. Therefore, it is beneficial for us to examine MLTRO’s ownership structure in more detail.

See our latest analysis for TROC DE L’ILE
ENXTPA:MLTRO Ownership_summary Mar 31st 18
ENXTPA:MLTRO Ownership_summary Mar 31st 18

General Public Ownership

A big stake of 15.26% in MLTRO is held by the general public. With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Private Equity Ownership

Private equity firms hold a 84.74% stake in MLTRO. With a stake of this size, they can be influential in key policy decisions. This is an encouraging sign for investors as these investors tend to be active strategist in companies, focusing on increasing operational and capital efficiency for the firm.

Next Steps:

A large shareholding of MLTRO by the general public could mean higher market liquidity to buy and sell shares for retail investors, and also the potential to have more influence over company policies as a collective. However, ownership structure should not be the only determining factor when you’re building an investment thesis for MLTRO. Rather, you should be examining fundamental factors such as TROC DE L’ILE’s past track record and financial health. I highly recommend you to complete your research by taking a look at the following:

  • 1. Financial Health: Is MLTRO’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. 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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.