Interested In Caledonia Mining Corporation Plc (TSE:CAL)? Here’s What Its Recent Track-Record Looks Like
Examining Caledonia Mining Corporation Plc’s (TSX:CAL) 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 CAL’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. View our latest analysis for Caledonia Mining
Commentary On CAL’s Past Performance
I look at data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to analyze various companies on a similar basis, using the latest information. Caledonia Mining’s most recent earnings is $9.2M, which, against the prior year’s level, has jumped up by 29.04%. Given that these figures may be relatively short-term thinking, I’ve computed an annualized five-year value for Caledonia Mining’s earnings, which stands at $5.7M. This suggests that, on average, Caledonia Mining has been able to gradually improve its profits over the last couple of years as well.
What’s the driver of this growth? Let’s take a look at if it is only because of industry tailwinds, or if Caledonia Mining has seen some company-specific growth. In the last couple of years, Caledonia Mining top-line expansion has outstripped earnings and the growth rate of expenses. Though this brought about a margin contraction, it has lessened Caledonia Mining’s earnings contraction. Looking at growth from a sector-level, the Canadian metals and mining industry has been growing its average earnings by double-digit 45.80% in the previous year, and 15.82% over the previous five years. This shows that any tailwind the industry is profiting from, Caledonia Mining has not been able to gain as much as its industry peers.
What does this mean?
Caledonia Mining’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Caledonia Mining has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Caledonia Mining to get a better picture of the stock by looking at:
1. Financial Health: Is CAL’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. 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.
