Measuring Euro Tech Holdings Company Limited’s (NASDAQ:CLWT) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess CLWT’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. Check out our latest analysis for Euro Tech Holdings
Did CLWT’s recent earnings growth beat the long-term trend and the industry?
For the most up-to-date info, I use the ‘latest twelve-month’ data, 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 analyze different stocks on a similar basis, using the latest information. For Euro Tech Holdings, its most recent earnings (trailing twelve month) is US$473.00K, which, in comparison to the prior year’s figure, has escalated by over 100%. Given that these values are fairly short-term thinking, I have calculated an annualized five-year figure for CLWT’s net income, which stands at -US$59.13K This shows that, generally, Euro Tech Holdings has been able to increasingly improve its earnings over the last couple of years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is solely attributable to an industry uplift, or if Euro Tech Holdings has seen some company-specific growth. In the past few years, Euro Tech Holdings expanded bottom-line, while its top-line fell, by efficiently managing its costs. This brought about to a margin expansion and profitability over time. Inspecting growth from a sector-level, the US trade distributors industry has been growing its average earnings by double-digit 27.29% over the prior year, and a more subdued 5.91% over the previous five years. This means that any tailwind the industry is deriving benefit from, Euro Tech Holdings is able to leverage 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 Euro Tech Holdings gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Euro Tech Holdings to get a more holistic view of the stock by looking at:
- Financial Health: Is CLWT’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.
- Valuation: What is CLWT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CLWT is currently mispriced by the market.
- 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.