Elecnor: Impressive growth despite falling profits - what now?
Elecnor: Impressive growth despite falling profits - what now?
investors who rely on stable and enjoyable returns should elecnor, see also (BME: ENO) take a closer look. In the past three years, the company has significantly exceeded the total market return of 27 percent with an increase of 92 percent. Fortunately, the total amount that takes the dividends is even with impressive 106 percent.
However, it is important to know that the latest developments are not only out of joy. Last week there was a decline, which pressed the annual return to only 31 percent, including dividends. This indicates that investors have to pay attention to other factors than just the course changes of the share.returns and balance sheet
The Elecnor share has increased in the past three years, but the development of profits per share (EPS) is worrying because they have fallen 18 percent annually. This shows that the market apparently does not want to assess the company exclusively based on profit growth. Instead, annual sales growth of 10 percent could be seen as a sign of the growth of elecnor. It could be that the company is currently doing without profits in order to be more successful in the long term.
An important concept that comes to the fore when looking at returns is the difference between the total yield for shareholders (TSR) and the pure course return. The TSR not only takes into account the increase in the share price, but also dividend distributions. The result shows that the TSR of Elecnor has a positive balance, while the course return is less intoxicating.
Although the 31 percent return has been acceptable for most investors in the past twelve months, it is not directly related to the company's long-term expectations. The long -term perspective remains crucial, especially if you consider that the average return over the past five years has been 16 percent.
The future in view
In view of the latest fluctuations and the variable market conditions, it is advisable to consider other important indicators and warning signals. Analysts advise you to find out about the future profit forecasts from Elecnor before investing in the share. A free report that collects some of these predictions could provide valuable insights. In summary, it can be said that, despite the challenges that profit development brings with it, Elecnor is a company that could remain of interest to investors. For deeper insights and reviews that provide valuable clues to liquidity, dividends and risks, it makes sense to consult further analyzes.For more information about Elecnor and returns, a comprehensive report is available that looks at the latest developments. More on that is to be found here on Simplywall.st .
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