Interested In Telestrada SA (WSE:TLS)? Here’s How It Performed Recently

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For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Telestrada SA’s (WSE:TLS) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.

Check out our latest analysis for Telestrada

Have TLS’s earnings improved against past performances and the industry?

TLS’s trailing twelve-month earnings (from 31 March 2019) of zł10m has increased by 0.1% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 32%, indicating the rate at which TLS is growing has slowed down. Why could this be happening? Well, let’s look at what’s going on with margins and if the rest of the industry is feeling the heat.

WSE:TLS Income Statement, June 14th 2019
WSE:TLS Income Statement, June 14th 2019

In terms of returns from investment, Telestrada has invested its equity funds well leading to a 39% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 33% exceeds the PL Telecom industry of 2.0%, indicating Telestrada has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Telestrada’s debt level, has increased over the past 3 years from 36% to 41%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Telestrada gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Telestrada to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for TLS’s future growth? Take a look at our free research report of analyst consensus for TLS’s outlook.
  2. Financial Health: Are TLS’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.
  3. 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 editorial-team@simplywallst.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.