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Analyzing Wallenius Wilhelmsen ASA’s (OB:WALWIL) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess WALWIL’s recent performance announced on 31 March 2019 and compare these figures to its long-term trend and industry movements.
Were WALWIL’s earnings stronger than its past performances and the industry?
WALWIL’s trailing twelve-month earnings (from 31 March 2019) of US$102m has jumped 31% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -10%, indicating the rate at which WALWIL is growing has accelerated. What’s enabled this growth? Let’s take a look at if it is only owing to industry tailwinds, or if Wallenius Wilhelmsen has experienced some company-specific growth.
In terms of returns from investment, Wallenius Wilhelmsen has fallen short of achieving a 20% return on equity (ROE), recording 3.8% instead. Furthermore, its return on assets (ROA) of 3.0% is below the NO Shipping industry of 5.5%, indicating Wallenius Wilhelmsen’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Wallenius Wilhelmsen’s debt level, has increased over the past 3 years from 3.1% to 4.8%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 89% to 72% over the past 5 years.
What does this mean?
Wallenius Wilhelmsen’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Recent positive growth isn’t always indicative of a continued optimistic outlook. There could be variables that are affecting the entire industry thus the high industry growth rate over the same period of time. I recommend you continue to research Wallenius Wilhelmsen to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for WALWIL’s future growth? Take a look at our free research report of analyst consensus for WALWIL’s outlook.
- Financial Health: Are WALWIL’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 firstname.lastname@example.org. 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.