Does DekelOil Public Limited’s (AIM:DKL) Past Performance Indicate A Stronger Future?
Assessing DekelOil Public Limited’s (AIM:DKL) 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 DKL’s recent performance announced on 30 June 2017 and evaluate these figures to its longer term trend and industry movements. View our latest analysis for DekelOil Public
Could DKL beat the long-term trend and outperform its industry?
I prefer to use 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 method enables me to analyze many different companies on a more comparable basis, using the latest information. DekelOil Public’s latest twelve-month earnings is €2M, which, in comparison to the previous year’s figure, has escalated by over 100%. Since these figures are relatively myopic, I’ve computed an annualized five-year figure for DekelOil Public’s net income, which stands at -€1M. This suggests that, on average, DekelOil Public has been able to increasingly raise its profits over the past couple of years as well.
What’s enabled this growth? Let’s take a look at if it is only attributable to an industry uplift, or if DekelOil Public has experienced some company-specific growth. The hike in earnings seems to be driven by a solid top-line increase beating its growth rate of costs. Though this has caused a margin contraction, it has made DekelOil Public more profitable. Inspecting growth from a sector-level, the UK food products industry has been growing its average earnings by double-digit 21.52% in the previous year, and a more subdued 5.81% over the previous five years. This suggests that whatever uplift the industry is gaining from, DekelOil Public is able to leverage this to its advantage.
What does this mean?
Though DekelOil Public’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research DekelOil Public to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for DKL’s future growth? Take a look at our free research report of analyst consensus for DKL’s outlook.
2. Financial Health: Is DKL’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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.
