Is the share price of Technotrans SE (ETR: TTR1) to fight due to its mixed financial data?

With its share by 7.8% last month, it is easy to ignore technotrans (ETR: TTR1). However, we decided to examine the company's financial data to determine whether it has anything to do with the price decline. In the long run, the stock prices are usually due to the financial performance of a company, and therefore we have decided to pay more attention to the company's financial performance. In particular, we decided to study the ROE of Technotrans in this article.

Rendite for equity or ROE is a test for how effectively a company grows its value and manages the money of the investors. It is simply used to evaluate the profitability of a company in relation to its equity.

Take a look at our latest analysis for technotrans

The Formula for the return on equity Is:

Equity return = net profit (from continued operations) ÷ shareholders equity

Based on the above formula, the ROE is for technotrans:

7.8% = € 7.5 million € 96 million (based on the follow -up twelve months to September 2024).

The 'return' is the annual profit. This means that the company has made a profit of € 0.08 for each shareholder worth € 1.

So far we have learned that Roe measures how efficiently a company generates its profits. Depending on how much of these profits the company is re -established or “retaining” and how effective it does, we can evaluate a company's profit growth potential. In general, other things are the same, companies with high equity and profit operating returns have a higher growth rate than companies that do not share these attributes.

At first glance, Technotrans' Roe is not much to speak. We then compared the company's recourse to the broader industry and were disappointed to see that the ROE is lower than the industry average of 10%. However, the moderate net rifle of 8.3%, which is to be recorded by Technotrans in the past five years, is definitely positive. We assume that there could be other factors in the game. For example, the company has a low payout rate or is managed efficiently.

Next, compared to the growth of the industry net income, we found that the growth of technotrans in recent years has been lower than 17% industry growth, which we do not like to see.

Profit growth is a big factor in stock assessment. It is important for an investor to know whether the market has a prize in the expected profit growth (or the decline) of the company. This will then help you to determine whether the stock is placed for a light or dark future. Is Technotrans rather estimated compared to other companies? These 3 evaluation measures can help you choose.