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Has Thessaloniki Port Authority Societe Anonyme's (ATH:OLTH) Impressive Stock Performance Got Anything to Do With Its Fundamentals?

Simply Wall St · 06/12 03:09

Thessaloniki Port Authority Societe Anonyme (ATH:OLTH) has had a great run on the share market with its stock up by a significant 26% over the last three months. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Particularly, we will be paying attention to Thessaloniki Port Authority Societe Anonyme's ROE today.

ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.

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How Do You Calculate Return On Equity?

Return on equity can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Thessaloniki Port Authority Societe Anonyme is:

14% = €28m ÷ €198m (Based on the trailing twelve months to December 2024).

The 'return' is the amount earned after tax over the last twelve months. Another way to think of that is that for every €1 worth of equity, the company was able to earn €0.14 in profit.

Check out our latest analysis for Thessaloniki Port Authority Societe Anonyme

What Is The Relationship Between ROE And Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don’t share these attributes.

Thessaloniki Port Authority Societe Anonyme's Earnings Growth And 14% ROE

To start with, Thessaloniki Port Authority Societe Anonyme's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 11%. This probably laid the ground for Thessaloniki Port Authority Societe Anonyme's moderate 7.4% net income growth seen over the past five years.

We then compared Thessaloniki Port Authority Societe Anonyme's net income growth with the industry and found that the company's growth figure is lower than the average industry growth rate of 25% in the same 5-year period, which is a bit concerning.

past-earnings-growth
ATSE:OLTH Past Earnings Growth June 12th 2025

Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is Thessaloniki Port Authority Societe Anonyme fairly valued compared to other companies? These 3 valuation measures might help you decide.

Is Thessaloniki Port Authority Societe Anonyme Making Efficient Use Of Its Profits?

While Thessaloniki Port Authority Societe Anonyme has a three-year median payout ratio of 74% (which means it retains 26% of profits), the company has still seen a fair bit of earnings growth in the past, meaning that its high payout ratio hasn't hampered its ability to grow.

Besides, Thessaloniki Port Authority Societe Anonyme has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.

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Conclusion

Overall, we feel that Thessaloniki Port Authority Societe Anonyme certainly does have some positive factors to consider. Its earnings growth is decent, and the high ROE does contribute to that growth. However, investors could have benefitted even more from the high ROE, had the company been reinvesting more of its earnings. Until now, we have only just grazed the surface of the company's past performance by looking at the company's fundamentals. To gain further insights into Thessaloniki Port Authority Societe Anonyme's past profit growth, check out this visualization of past earnings, revenue and cash flows.