Has Fintech S.A.’s (WSE:FTH) Impressive Stock Performance Got Anything to Do With Its Fundamentals?


Fintech’s (WSE:FTH) stock is up by a considerable 91% over the past week. Given that stock prices are usually aligned with a company’s financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. In this article, we decided to focus on Fintech’s ROE.

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 other words, it is a profitability ratio which measures the rate of return on the capital provided by the company’s shareholders.

Check out our latest analysis for Fintech

How To Calculate Return On Equity?

The formula for ROE is:

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

So, based on the above formula, the ROE for Fintech is:

2.5% = zł159k ÷ zł6.4m (Based on the trailing twelve months to September 2022).

The ‘return’ is the yearly profit. So, this means that for every PLN1 of its shareholder’s investments, the company…

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