We Think That There Are Issues Underlying John Mattson Fastighetsföretagen's (STO:JOMA) Earnings

Despite posting some strong earnings, the market for John Mattson Fastighetsföretagen AB (publ)'s (STO:JOMA) stock hasn't moved much. We did some digging, and we found some concerning factors in the details.

View our latest analysis for John Mattson Fastighetsföretagen

How Do Unusual Items Influence Profit?

Importantly, our data indicates that John Mattson Fastighetsföretagen's profit received a boost of kr411m in unusual items, over the last year. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. John Mattson Fastighetsföretagen had a rather significant contribution from unusual items relative to its profit to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.

That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates.

Our Take On John Mattson Fastighetsföretagen's Profit Performance

As previously mentioned, John Mattson Fastighetsföretagen's large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. As a result, we think it may well be the case that John Mattson Fastighetsföretagen's underlying earnings power is lower than its statutory profit. The good news is that it earned a profit in the last twelve months, despite its previous loss. 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. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For instance, we've identified 4 warning signs for John Mattson Fastighetsföretagen (2 are a bit unpleasant) you should be familiar with.

This note has only looked at a single factor that sheds light on the nature of John Mattson Fastighetsföretagen's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. 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.