We Like The Quality Of Ram-On Investments and Holdings (1999)'s (TLV:RMN) Earnings

Ram-On Investments and Holdings (1999) Ltd's (TLV:RMN) recent earnings report didn't offer any surprises, with the shares unchanged over the last week. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report.

Check out 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 ₪14m 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 June 2024. 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 discussed above, we think the significant unusual expense will make Ram-On Investments and Holdings (1999)'s statutory profit lower than it would otherwise have been. 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! And the EPS is up 28% over the last twelve months. 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. Our analysis shows 5 warning signs for Ram-On Investments and Holdings (1999) (2 are significant!) and we strongly recommend you look at these bad boys before investing.

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 are plenty of other ways to inform your opinion of a company. 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.