Examining Bilfinger SE’s (DB:GBF) 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 GBF’s latest performance announced on 31 December 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for Bilfinger
How Did GBF’s Recent Performance Stack Up Against Its Past?
I look at the ‘latest twelve-month’ data, 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 blend enables me to assess many different companies on a more comparable basis, using new information. For Bilfinger, its latest earnings (trailing twelve month) is -€143.00M, which, in comparison to the previous year’s level, has become less negative. Given that these values may be relatively short-term thinking, I have created an annualized five-year figure for GBF’s earnings, which stands at -€1.90M. This means that, Bilfinger has historically performed better than recently, despite the fact that it seems like earnings are now heading back in the right direction again.
We can further examine Bilfinger’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Bilfinger has seen an annual decline in revenue of -12.22%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the DE commercial services industry has been growing its average earnings by double-digit 10.55% in the prior twelve months, and 10.82% over the previous five years. This shows that, though Bilfinger is presently running a loss, it may have benefited from industry tailwinds, moving earnings in the right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues Bilfinger may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Bilfinger to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for GBF’s future growth? Take a look at our free research report of analyst consensus for GBF’s outlook.
- Financial Health: Is GBF’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.
- 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.