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Measuring Madhya Pradesh Today Media Limited’s (NSE:MPTODAY) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess MPTODAY’s recent performance announced on 31 March 2019 and compare these figures to its historical trend and industry movements.
Did MPTODAY’s recent earnings growth beat the long-term trend and the industry?
MPTODAY’s trailing twelve-month earnings (from 31 March 2019) of ₹45m has jumped 45% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 36%, indicating the rate at which MPTODAY is growing has accelerated. What’s the driver of this growth? Let’s take a look at whether it is merely because of industry tailwinds, or if Madhya Pradesh Today Media has seen some company-specific growth.
In terms of returns from investment, Madhya Pradesh Today Media has fallen short of achieving a 20% return on equity (ROE), recording 17% instead. However, its return on assets (ROA) of 13% exceeds the IN Media industry of 8.7%, indicating Madhya Pradesh Today Media has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for Madhya Pradesh Today Media’s debt level, has declined over the past 3 years from 38% to 20%.
What does this mean?
Madhya Pradesh Today Media’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Madhya Pradesh Today 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 Madhya Pradesh Today Media to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MPTODAY’s future growth? Take a look at our free research report of analyst consensus for MPTODAY’s outlook.
- Financial Health: Are MPTODAY’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.