Want To Invest In Interpump Group S.p.A. (BIT:IP)? Here's How It Performed Lately
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Understanding how Interpump Group S.p.A. (BIT:IP) is performing as a company requires looking at more than just a years' earnings. Today I will run you through a basic sense check to gain perspective on how Interpump Group is doing by comparing its latest earnings with its long-term trend as well as the performance of its machinery industry peers.
Check out our latest analysis for Interpump Group
Could IP beat the long-term trend and outperform its industry?
IP's trailing twelve-month earnings (from 31 March 2019) of €166m has increased by 8.3% 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 22%, indicating the rate at which IP is growing has slowed down. To understand what's happening, let's look at what's transpiring with margins and whether the whole industry is experiencing the hit as well.
In terms of returns from investment, Interpump Group has fallen short of achieving a 20% return on equity (ROE), recording 18% instead. However, its return on assets (ROA) of 9.4% exceeds the IT Machinery industry of 4.9%, indicating Interpump Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Interpump Group’s debt level, has increased over the past 3 years from 14% to 18%.
What does this mean?
Interpump Group's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Interpump Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Interpump Group to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for IP’s future growth? Take a look at our free research report of analyst consensus for IP’s outlook.
Financial Health: Are IP’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 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.
