When Public Joint Stock Company Gazprom Gazoraspredelenie Rostov-na-Donu (MCX:RTGZ) released its most recent earnings update (31 December 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Gazprom Gazoraspredelenie Rostov-na-Donu has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see RTGZ has performed.

See our latest analysis for Gazprom Gazoraspredelenie Rostov-na-Donu

Was RTGZ's recent earnings decline worse than the long-term trend and the industry?

RTGZ's trailing twelve-month earnings (from 31 December 2018) of RUруб824m has declined by -8.5% compared to the previous year.

Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 6.8%, indicating the rate at which RTGZ is growing has slowed down. Why is this? Well, let’s take a look at what’s going on with margins and if the entire industry is feeling the heat.

In terms of returns from investment, Gazprom Gazoraspredelenie Rostov-na-Donu has fallen short of achieving a 20% return on equity (ROE), recording 6.3% instead. Furthermore, its return on assets (ROA) of 4.1% is below the RU Gas Utilities industry of 4.8%, indicating Gazprom Gazoraspredelenie Rostov-na-Donu's are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Gazprom Gazoraspredelenie Rostov-na-Donu’s debt level, has declined over the past 3 years from 12% to 7.2%.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors impacting its business. I recommend you continue to research Gazprom Gazoraspredelenie Rostov-na-Donu to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for RTGZ’s future growth? Take a look at our free research report of analyst consensus for RTGZ’s outlook.

2. Financial Health: Are RTGZ’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 December 2018. 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.