Should Bank Millennium SA.’s (WSE:MIL) Recent Earnings Worry You?
Assessing Bank Millennium SA.’s (WSE:MIL) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess MIL’s recent performance announced on 31 March 2018 and evaluate these figures to its long-term trend and industry movements. Check out our latest analysis for Bank Millennium
Was MIL weak performance lately part of a long-term decline?
I prefer to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to assess various companies on a more comparable basis, using the most relevant data points. For Bank Millennium, its latest trailing-twelve-month earnings is ZŁ696.01M, which, in comparison to the previous year’s figure, has dropped by -1.21%. Since these values may be somewhat short-term thinking, I’ve estimated an annualized five-year value for Bank Millennium’s net income, which stands at ZŁ572.33M This suggests that, on average, Bank Millennium has been able to grow its earnings over the past couple of years.
What’s enabled this growth? Well, let’s take a look at if it is merely a result of industry tailwinds, or if Bank Millennium has experienced some company-specific growth. Over the last few years, Bank Millennium expanded its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the PL banks industry has been growing, albeit, at a muted single-digit rate of 6.56% over the past year, and 3.09% over the past five. This means any uplift the industry is enjoying, Bank Millennium has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I suggest you continue to research Bank Millennium to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for MIL’s future growth? Take a look at our free research report of analyst consensus for MIL’s outlook.
Financial Health: Is MIL’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.
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 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
