Interested In AB Dynamics Plc (AIM:ABDP)? Here’s What Its Recent Track-Record Looks Like
Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at AB Dynamics Plc’s (AIM:ABDP) 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. See our latest analysis for ABDP
Commentary On ABDP’s Past Performance
For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This technique enables me to examine different stocks on a more comparable basis, using new information. For AB Dynamics, the most recent twelve-month earnings is £3.9M, which compared to the previous year’s figure, Given that these values may be fairly short-term thinking, I’ve created an annualized five-year value for AB Dynamics’s earnings, which stands at £2.5M. This means that, generally, AB Dynamics has been able to increase its earnings over the past few years.
How has it been able to do this? Well, let’s take a look at whether it is only owing to an industry uplift, or if AB Dynamics has seen some company-specific growth. Over the last few years, AB Dynamics expanded its bottom line faster than revenue by effectively controlling its costs. This has led to a margin expansion and profitability over time. Scanning growth from a sector-level, the UK auto components industry has been increasing average earnings growth of 74.56% over the prior year, and a robust 18.82% over the previous few years. This shows that any uplift the industry is profiting from, AB Dynamics has not been able to realize the gains unlike its industry peers.
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 AB Dynamics gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research AB Dynamics to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for ABDP’s future growth? Take a look at our free research report of analyst consensus for ABDP’s outlook.
2. Financial Health: Is ABDP’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.
