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Understanding how Makarony Polskie S.A. (WSE:MAK) 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 Makarony Polskie is doing by comparing its latest earnings with its long-term trend as well as the performance of its food industry peers.
View our latest analysis for Makarony Polskie
How Did MAK's Recent Performance Stack Up Against Its Past?
MAK's trailing twelve-month earnings (from 31 December 2018) of zł5.8m has jumped 21% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 10%, indicating the rate at which MAK is growing has accelerated. What's the driver of this growth? Let's see if it is only due to an industry uplift, or if Makarony Polskie has experienced some company-specific growth.
In terms of returns from investment, Makarony Polskie has fallen short of achieving a 20% return on equity (ROE), recording 7.4% instead. Furthermore, its return on assets (ROA) of 4.5% is below the PL Food industry of 6.9%, indicating Makarony Polskie's are utilized less efficiently. However, its return on capital (ROC), which also accounts for Makarony Polskie’s debt level, has increased over the past 3 years from 7.3% to 8.1%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 44% to 34% over the past 5 years.
What does this mean?
Though Makarony Polskie's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Makarony Polskie to get a better picture of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for MAK’s future growth? Take a look at our free research report of analyst consensus for MAK’s outlook.
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Financial Health: Are MAK’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.
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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.