Supply Chain Council of European Union | Scceu.org
Distribution

Public Joint-Stock Company Interregional Distribution Grid Company of the North-West’s (MCX:MRKZ) Earnings Dropped -5.7%, Did Its Industry Show Weakness Too?

Today I will examine Public Joint-Stock Company Interregional Distribution Grid Company of the North-West’s (MISX:MRKZ) latest earnings update (31 December 2019) and compare these figures against its performance over the past couple of years, in addition to how the rest of MRKZ’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time.

See our latest analysis for Interregional Distribution Grid Company of the North-West

How Well Did MRKZ Perform?

MRKZ recently turned a profit of ₽1.1b (most recent trailing twelve-months) compared to its average loss of -₽49.9m over the past five years.

MISX:MRKZ Income Statement May 19th 2020

In terms of returns from investment, Interregional Distribution Grid Company of the North-West has fallen short of achieving a 20% return on equity (ROE), recording 5.5% instead. Furthermore, its return on assets (ROA) of 4.5% is below the RU Electric Utilities industry of 4.7%, indicating Interregional Distribution Grid Company of the North-West’s are utilized less efficiently. However, its return on capital (ROC), which also accounts for Interregional Distribution Grid Company of the North-West’s debt level, has increased over the past 3 years from 6.9% to 8.3%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 93% to 74% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors affecting its business. You should continue to research Interregional Distribution Grid Company of the North-West to get a better picture of the stock by looking at:

  1. Financial Health: Are MRKZ’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.
  2. Valuation: What is MRKZ worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether MRKZ is currently mispriced by the market.
  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 December 2019. This may not be consistent with full year annual report figures.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.

Related posts

An Idea Whose Time is Now – Mackinac Center

scceu

Distribution Of Free E-patta Starts, 3.35l People To Benefit | Chennai News

scceu

Monarch Beverage Co. is sold to Illinois company

scceu
`