When Elisa Oyj (HEL:ELISA) announced its most recent earnings (30 June 2019), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Elisa Oyj performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see ELISA has performed.

View our latest analysis for Elisa Oyj

Commentary On ELISA's Past Performance

ELISA's trailing twelve-month earnings (from 30 June 2019) of €304m has declined by -1.5% 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 8.7%, indicating the rate at which ELISA is growing has slowed down. What could be happening here? Well, let's look at what's going on with margins and whether the entire industry is feeling the heat.

In terms of returns from investment, Elisa Oyj has invested its equity funds well leading to a 31% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 12% exceeds the FI Telecom industry of 4.6%, indicating Elisa Oyj has used its assets more efficiently. However, its return on capital (ROC), which also accounts for Elisa Oyj’s debt level, has declined over the past 3 years from 21% to 18%.

What does this mean?

Elisa Oyj's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors influencing its business. I suggest you continue to research Elisa Oyj to get a more holistic view of the stock by looking at:

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

2. Financial Health: Are ELISA’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 30 June 2019. This may not be consistent with full year annual report figures.

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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.