Ram-On Investments and Holdings (1999)'s (TLV:RMN) Soft Earnings Don't Show The Whole Picture

Ram-On Investments and Holdings (1999) Ltd's (TLV:RMN) recent soft profit numbers didn't appear to worry shareholders, as the stock price showed strength. However, we think the company is showing some signs that things are more promising than they seem.

View our latest analysis for Ram-On Investments and Holdings (1999)

The Impact Of Unusual Items On Profit

To properly understand Ram-On Investments and Holdings (1999)'s profit results, we need to consider the ₪19m expense attributed to unusual items. It's never great to see unusual items costing the company profits, but on the upside, things might improve sooner rather than later. We looked at thousands of listed companies and found that unusual items are very often one-off in nature. And, after all, that's exactly what the accounting terminology implies. Ram-On Investments and Holdings (1999) took a rather significant hit from unusual items in the year to September 2023. As a result, we can surmise that the unusual items made its statutory profit significantly weaker than it would otherwise be.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Ram-On Investments and Holdings (1999).

Our Take On Ram-On Investments and Holdings (1999)'s Profit Performance

As we mentioned previously, the Ram-On Investments and Holdings (1999)'s profit was hampered by unusual items in the last year. Because of this, we think Ram-On Investments and Holdings (1999)'s underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! Unfortunately, though, its earnings per share actually fell back over the last year. 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. If you want to do dive deeper into Ram-On Investments and Holdings (1999), you'd also look into what risks it is currently facing. In terms of investment risks, we've identified 5 warning signs with Ram-On Investments and Holdings (1999), and understanding these bad boys should be part of your investment process.

This note has only looked at a single factor that sheds light on the nature of Ram-On Investments and Holdings (1999)'s profit. But there is always more to discover if you are capable of focussing your mind on minutiae. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. 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 that insiders are buying 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.