Investors Can Find Comfort In Intergis' (KRX:129260) Earnings Quality

Soft earnings didn't appear to concern Intergis Co., Ltd's (KRX:129260) shareholders over the last week. We did some digging, and we believe the earnings are stronger than they seem.

See our latest analysis for Intergis

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Intergis' profit was reduced by ₩4.1b, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. 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. If Intergis doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year.

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

Our Take On Intergis' Profit Performance

Unusual items (expenses) detracted from Intergis' earnings over the last year, but we might see an improvement next year. Because of this, we think Intergis' earnings potential is at least as good as it seems, and maybe even better! 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 Intergis, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 4 warning signs for Intergis and you'll want to know about them.

Today we've zoomed in on a single data point to better understand the nature of Intergis' 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 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.