Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Assessing Eros International Media Limited’s (NSE:EROSMEDIA) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess EROSMEDIA’s recent performance announced on 31 March 2019 and evaluate these figures to its long-term trend and industry movements.
Were EROSMEDIA’s earnings stronger than its past performances and the industry?
EROSMEDIA’s trailing twelve-month earnings (from 31 March 2019) of ₹2.7b has jumped 17% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 2.1%, indicating the rate at which EROSMEDIA is growing has accelerated. How has it been able to do this? Well, let’s take a look at whether it is merely due to industry tailwinds, or if Eros International Media has seen some company-specific growth.
In terms of returns from investment, Eros International Media has fallen short of achieving a 20% return on equity (ROE), recording 10% instead. However, its return on assets (ROA) of 8.2% exceeds the IN Entertainment industry of 1.5%, indicating Eros International Media has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Eros International Media’s debt level, has declined over the past 3 years from 15% to 9.7%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Eros International Media has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Eros International Media to get a better picture of the stock by looking at:
- Financial Health: Are EROSMEDIA’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 31 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.