Did Impax Asset Management Group plc’s (LON:IPX) Recent Earnings Growth Beat The Trend?
Assessing Impax Asset Management Group plc’s (AIM:IPX) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess IPX’s recent performance announced on 30 September 2017 and evaluate these figures to its longer term trend and industry movements. Check out our latest analysis for Impax Asset Management Group
Commentary On IPX’s Past Performance
I like to use data from the most recent 12 months, 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 examine different companies on a similar basis, using the latest information. For Impax Asset Management Group, its most recent bottom-line (trailing twelve month) is £7.2M, which, in comparison to last year’s figure, has escalated by a substantial 78.23%. Given that these figures are somewhat short-term, I’ve computed an annualized five-year figure for Impax Asset Management Group’s net income, which stands at £2.2M. This suggests that, generally, Impax Asset Management Group has been able to steadily improve its profits over the past couple of years as well.
How has it been able to do this? Let’s take a look at whether it is only due to industry tailwinds, or if Impax Asset Management Group has experienced some company-specific growth. In the last few years, Impax Asset Management Group expanded its bottom line faster than revenue by efficiently controlling its costs. This has caused a margin expansion and profitability over time. Inspecting growth from a sector-level, the UK capital markets industry has been growing its average earnings by double-digit 22.59% over the previous year, and 13.90% over the past half a decade. This means that any tailwind the industry is enjoying, Impax Asset Management Group is capable of amplifying this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Impax Asset Management Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Impax Asset Management Group to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for IPX’s future growth? Take a look at our free research report of analyst consensus for IPX’s outlook.
2. Financial Health: Is IPX’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.
3. 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.
