Examining Intercede Group plc’s (AIM:IGP) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess IGP’s latest performance announced on 30 September 2017 and weight these figures against its longer term trend and industry movements. View our latest analysis for Intercede Group
Could IGP beat the long-term trend and outperform its industry?
I look at data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This allows me to assess various companies in a uniform manner using new information. For Intercede Group, its most recent bottom-line (trailing twelve month) is -UK£3.26M, which, relative to the previous year’s figure, has become less negative. Since these figures are relatively myopic, I’ve determined an annualized five-year figure for IGP’s net income, which stands at -UK£820.90K. This means Intercede Group has historically performed better than recently, even though it seems like earnings are now heading back in the right direction again.
We can further examine Intercede Group’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Intercede Group’s top-line has risen by a mere 5.65%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the UK software industry has been growing its average earnings by double-digit 22.04% in the prior year, and 15.27% over the past five years. This shows that, though Intercede Group is presently running a loss, it may have benefited from industry tailwinds, moving earnings towards to right direction.
What does this mean?
Intercede Group’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to forecast what will occur going forward, and when. The most useful step is to assess company-specific issues Intercede Group may be facing and whether management guidance has dependably been met in the past. You should continue to research Intercede Group to get a better picture of the stock by looking at:
- Financial Health: Is IGP’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.