Does Boliden AB’s (STO:BOL) 61.77% Earnings Growth Make It An Outperformer?
For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Boliden AB’s (OM:BOL) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. View our latest analysis for Boliden
Were BOL’s earnings stronger than its past performances and the industry?
I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique allows me to assess different companies on a more comparable basis, using new information. For Boliden, its most recent bottom-line (trailing twelve month) is KR6.85B, which, in comparison to the previous year’s figure, has risen by an impressive 61.77%. Since these figures may be somewhat nearsighted, I’ve created an annualized five-year value for BOL’s net income, which stands at KR3.19B This means generally, Boliden has been able to gradually raise its profits over the past couple of years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is merely attributable to industry tailwinds, or if Boliden has seen some company-specific growth. In the past few years, Boliden grew its bottom line faster than revenue by effectively controlling its costs. This has caused a margin expansion and profitability over time. Viewing growth from a sector-level, the SE metals and mining industry has been growing its average earnings by double-digit 30.92% over the past year, . This is a turnaround from a volatile drop of -8.26% in the previous couple of years. This shows that, in the recent industry expansion, Boliden is capable of leveraging this to its advantage.
What does this mean?
Boliden’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Boliden has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Boliden to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BOL’s future growth? Take a look at our free research report of analyst consensus for BOL’s outlook.
Financial Health: Is BOL’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.
