Did Byotrol plc’s (LON:BYOT) Earnings Growth Outperform The Industry?
Examining how Byotrol plc (AIM:BYOT) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Byotrol is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its chemicals industry peers. View our latest analysis for Byotrol
How BYOT fared against its long-term earnings performance and its industry
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to assess many different companies on a more comparable basis, using new information. For Byotrol, its most recent trailing-twelve-month earnings is -UK£355.12K, which, relative to the previous year’s level, has become less negative. Since these values are somewhat short-term thinking, I have calculated an annualized five-year value for Byotrol’s earnings, which stands at -UK£1.28M. This shows that, though net income is negative, it has become less negative over the years.
We can further assess Byotrol’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Byotrol’s top-line has grown by a mere 4.33%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Inspecting growth from a sector-level, the UK chemicals industry has been growing its average earnings by double-digit 38.15% over the previous twelve months, and a more subdued 2.98% over the past half a decade. This means though Byotrol is currently running a loss, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
Though Byotrol’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to envisage what will occur going forward, and when. The most insightful step is to assess company-specific issues Byotrol may be facing and whether management guidance has dependably been met in the past. You should continue to research Byotrol to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BYOT’s future growth? Take a look at our free research report of analyst consensus for BYOT’s outlook.
Financial Health: Is BYOT’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 30 September 2017. 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.
