Does Sun TV Network Limited’s (NSE:SUNTV) 11.8% Earnings Growth Make It An Outperformer?
Examining how Sun TV Network Limited (NSEI:SUNTV) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Sun TV Network is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its media industry peers. View our latest analysis for Sun TV Network
Were SUNTV’s earnings stronger than its past performances and the industry?
I like to 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 technique allows me to assess different companies on a similar basis, using the latest information. Sun TV Network’s most recent twelve-month earnings is ₹10,302.6M, which, in comparison to the prior year’s figure, has risen by 11.76%. Given that these figures are relatively nearsighted, I have created an annualized five-year value for SUNTV’s net income, which stands at ₹8,077.7M. This means generally, Sun TV Network has been able to steadily grow its bottom line over the last few years as well.
What’s enabled this growth? Let’s take a look at whether it is only because of an industry uplift, or if Sun TV Network has seen some company-specific growth. The ascend in earnings seems to be supported by a strong top-line increase outpacing its growth rate of costs. Though this has led to a margin contraction, it has made Sun TV Network more profitable. Inspecting growth from a sector-level, the IN media industry has been growing, albeit, at a unexciting single-digit rate of 2.03% in the prior twelve months, and a substantial 14.81% over the previous few years. This shows that whatever near-term headwind the industry is experiencing, the impact on Sun TV Network has been softer relative to its peers.
What does this mean?
Sun TV Network’s track record can be a valuable insight into its earnings performance, but it certainly 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? I recommend you continue to research Sun TV Network to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for SUNTV’s future growth? Take a look at our free research report of analyst consensus for SUNTV’s outlook.
2. Financial Health: Is SUNTV’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.
