OPUS GLOBAL Nyrt's (BUSE:OPUS) Shareholders May Want To Dig Deeper Than Statutory Profit

The market for OPUS GLOBAL Nyrt.'s (BUSE:OPUS) stock was strong after it released a healthy earnings report last week. However, we think that shareholders should be cautious as we found some worrying factors underlying the profit.

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The Impact Of Unusual Items On Profit

Importantly, our data indicates that OPUS GLOBAL Nyrt's profit received a boost of Ft3.9b in unusual items, over the last year. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. If OPUS GLOBAL Nyrt doesn't see that contribution repeat, then all else being equal we'd expect its profit to drop over the current year.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of OPUS GLOBAL Nyrt.

Our Take On OPUS GLOBAL Nyrt's Profit Performance

Arguably, OPUS GLOBAL Nyrt's statutory earnings have been distorted by unusual items boosting profit. Therefore, it seems possible to us that OPUS GLOBAL Nyrt's true underlying earnings power is actually less than its statutory profit. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on OPUS GLOBAL Nyrt's balance sheet by clicking here.

Today we've zoomed in on a single data point to better understand the nature of OPUS GLOBAL Nyrt's profit. 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. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.