After reading GEK TERNA Holdings Real Estate, Construction SA.’s (ATSE:GEKTERNA) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether GEK TERNA Holdings Real Estate Construction’s performance has been impacted by industry movements. In this article I briefly touch on my key findings. View our latest analysis for GEK TERNA Holdings Real Estate Construction
How Well Did GEKTERNA Perform?
I look at 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 enables me to assess various companies on a more comparable basis, using new information. For GEK TERNA Holdings Real Estate Construction, its latest earnings (trailing twelve month) is €69.82M, which, against the previous year’s figure, has rocketed up by more than double. Since these figures may be fairly short-term thinking, I’ve determined an annualized five-year figure for GEKTERNA’s earnings, which stands at -€21.59M This suggests that, on average, GEK TERNA Holdings Real Estate Construction has been able to increasingly raise its profits over the last few years as well.
How has it been able to do this? Well, let’s take a look at whether it is solely because of industry tailwinds, or if GEK TERNA Holdings Real Estate Construction has seen some company-specific growth. Over the past few years, GEK TERNA Holdings Real Estate Construction increased its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Eyeballing growth from a sector-level, the GR construction industry has been multiplying growth, more than doubling average earnings over the previous twelve months, and a solid 27.84% over the past half a decade.
What does this mean?
GEK TERNA Holdings Real Estate Construction’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as GEK TERNA Holdings Real Estate Construction gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research GEK TERNA Holdings Real Estate Construction to get a better picture of the stock by looking at:
- Financial Health: Is GEKTERNA’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 December 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.