Stock Analysis

Hili Properties' (MTSE:HLI) Earnings Seem To Be Promising

Source: Shutterstock

Hili Properties p.l.c.'s (MTSE:HLI) solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report.

View our latest analysis for Hili Properties

MTSE:HLI Earnings and Revenue History June 5th 2024

How Do Unusual Items Influence Profit?

For anyone who wants to understand Hili Properties' profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit was reduced by €3.1m due 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 that's hardly a surprise given these line items are considered unusual. Assuming those unusual expenses don't come up again, we'd therefore expect Hili Properties to produce a higher profit next year, all else being equal.

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

Our Take On Hili Properties' Profit Performance

Because unusual items detracted from Hili Properties' earnings over the last year, you could argue that we can expect an improved result in the current quarter. Based on this observation, we consider it likely that Hili Properties' statutory profit actually understates its earnings potential! And on top of that, its earnings per share increased by 5.2% in the last year. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. So while earnings quality is important, it's equally important to consider the risks facing Hili Properties at this point in time. For instance, we've identified 5 warning signs for Hili Properties (2 don't sit too well with us) you should be familiar with.

Today we've zoomed in on a single data point to better understand the nature of Hili Properties' 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. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.

Valuation is complex, but we're helping make it simple.

Find out whether Hili Properties is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at)

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.