Assessing Dino Polska SA’s (WSE:DNP) 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 DNP’s recent performance announced on 31 March 2018 and evaluate these figures to its long-term trend and industry movements. See our latest analysis for Dino Polska
Did DNP’s recent earnings growth beat the long-term trend and the industry?
DNP’s trailing twelve-month earnings (from 31 March 2018) of zł239.10m has jumped 51.06% compared to the previous year. Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 29.05%, indicating the rate at which DNP is growing has accelerated. What’s enabled this growth? Let’s see if it is only attributable to an industry uplift, or if Dino Polska has seen some company-specific growth.
In the past couple of years, Dino Polska grew its bottom line faster than revenue by effectively controlling its costs. This resulted in a margin expansion and profitability over time. Inspecting growth from a sector-level, the PL consumer retailing industry has been growing its average earnings by double-digit 22.97% over the previous year, . This is a turnaround from a volatile drop of -3.16% in the past few years. This means in the recent industry expansion, Dino Polska is able to leverage this to its advantage.
In terms of returns from investment, Dino Polska has invested its equity funds well leading to a 24.90% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 11.15% exceeds the PL Consumer Retailing industry of 3.25%, indicating Dino Polska has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Dino Polska’s debt level, has increased over the past 3 years from 12.59% to 18.83%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Dino Polska to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for DNP’s future growth? Take a look at our free research report of analyst consensus for DNP’s outlook.
- Financial Health: Is DNP’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.