Assessing Firma Oponiarska Debica Spólka Akcyjna’s (WSE:DBC) 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 DBC’s recent performance announced on 31 December 2017 and evaluate these figures to its long-term trend and industry movements. Check out our latest analysis for Firma Oponiarska Debica Spólka Akcyjna
Did DBC’s recent earnings growth beat the long-term trend and the industry?
I look at 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 examine many different companies in a uniform manner using the latest information. For Firma Oponiarska Debica Spólka Akcyjna, its most recent earnings (trailing twelve month) is ZŁ124.85M, which, relative to the prior year’s figure, has moved up by a substantial 92.80%. Given that these figures may be fairly nearsighted, I’ve computed an annualized five-year value for DBC’s earnings, which stands at ZŁ93.24M This suggests that, generally, Firma Oponiarska Debica Spólka Akcyjna has been able to consistently raise its net income over the last couple of years as well.
What’s enabled this growth? Let’s take a look at whether it is merely due to an industry uplift, or if Firma Oponiarska Debica Spólka Akcyjna has seen some company-specific growth. In the past few years, although bottom-line growth has seen a weakening, top-line growth has dropped much faster, resulting in a margin expansion and Firma Oponiarska Debica Spólka Akcyjna still maintaining profitability. Eyeballing growth from a sector-level, the PL auto components industry has been growing, albeit, at a subdued single-digit rate of 9.88% over the previous twelve months, and 9.01% over the previous five years. This means that whatever tailwind the industry is enjoying, Firma Oponiarska Debica Spólka Akcyjna is able to amplify this to its advantage.
What does this mean?
Though Firma Oponiarska Debica Spólka Akcyjna’s past data is helpful, it is only one aspect of my investment thesis. While Firma Oponiarska Debica Spólka Akcyjna has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Firma Oponiarska Debica Spólka Akcyjna to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is DBC’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.
- 2. Valuation: What is DBC 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 DBC is currently mispriced by the market.
- 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 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.