Did Public Joint Stock Company Inter RAO UES's (MCX:IRAO) Recent Earnings Growth Beat The Trend?
Measuring Public Joint Stock Company Inter RAO UES's (MISX:IRAO) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess IRAO's recent performance announced on 31 December 2019 and weigh these figures against its long-term trend and industry movements.
See our latest analysis for Inter RAO UES
How IRAO fared against its long-term earnings performance and its industry
IRAO's trailing twelve-month earnings (from 31 December 2019) of ₽82b has jumped 15% 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 26%, indicating the rate at which IRAO is growing has slowed down. What could be happening here? Well, let's examine what's occurring with margins and if the rest of the industry is feeling the heat.
In terms of returns from investment, Inter RAO UES has fallen short of achieving a 20% return on equity (ROE), recording 15% instead. However, its return on assets (ROA) of 9.7% exceeds the RU Electric Utilities industry of 4.9%, indicating Inter RAO UES has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Inter RAO UES’s debt level, has increased over the past 3 years from 12% to 17%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 30% to 0.6% over the past 5 years.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Inter RAO UES has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I suggest you continue to research Inter RAO UES to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for IRAO’s future growth? Take a look at our free research report of analyst consensus for IRAO’s outlook.
Financial Health: Are IRAO’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 December 2019. This may not be consistent with full year annual report figures.
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.
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