Should You Be Happy With ATM SA’s (WSE:ATM) Performance Lately?

Assessing ATM SA’s (WSE:ATM) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how ATM is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its it industry peers.

Check out our latest analysis for ATM

How Well Did ATM Perform?

ATM’s trailing twelve-month earnings (from 31 March 2018) of zł20.50m has

WSE:ATM Income Statement Export August 14th 18
WSE:ATM Income Statement Export August 14th 18

In terms of returns from investment, ATM has not invested its equity funds well, leading to a 8.24% return on equity (ROE), below the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 3.13% is below the PL IT industry of 5.85%, indicating ATM’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for ATM’s debt level, has increased over the past 3 years from 4.07% to 5.07%.

What does this mean?

Though ATM’s past data is helpful, it is only one aspect of my investment thesis. I recommend you continue to research ATM to get a more holistic view of the stock by looking at:

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

  2. Financial Health: Are ATM’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 March 2018. This may not be consistent with full year annual report figures.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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