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Solid Earnings May Not Tell The Whole Story For Blue Square Real Estate (TLV:BLSR)

Simply Wall St · 2d ago

Blue Square Real Estate Ltd's (TLV:BLSR) robust recent earnings didn't do much to move the stock. We think this is due to investors looking beyond the statutory profits and being concerned with what they see.

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earnings-and-revenue-history
TASE:BLSR Earnings and Revenue History December 10th 2025

The Impact Of Unusual Items On Profit

Importantly, our data indicates that Blue Square Real Estate's profit received a boost of ₪495m in unusual items, over the last year. While we like to see profit increases, we tend to be a little more cautious when unusual items have made a big contribution. We ran the numbers on most publicly listed companies worldwide, and it's very common for unusual items to be once-off in nature. And that's as you'd expect, given these boosts are described as 'unusual'. We can see that Blue Square Real Estate's positive unusual items were quite significant relative to its profit in the year to September 2025. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power.

Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Blue Square Real Estate.

Our Take On Blue Square Real Estate's Profit Performance

As previously mentioned, Blue Square Real Estate's large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. For this reason, we think that Blue Square Real Estate's statutory profits may be a bad guide to its underlying earnings power, and might give investors an overly positive impression of the company. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. In light of this, if you'd like to do more analysis on the company, it's vital to be informed of the risks involved. For instance, we've identified 3 warning signs for Blue Square Real Estate (1 is potentially serious) you should be familiar with.

This note has only looked at a single factor that sheds light on the nature of Blue Square Real Estate's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership.