When CPI Computer Peripherals International (ATSE:CPI) announced its most recent earnings (30 June 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well CPI Computer Peripherals International has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see CPI has performed. View our latest analysis for CPI Computer Peripherals International
Commentary On CPI’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 blend allows me to examine various companies on a more comparable basis, using the most relevant data points. For CPI Computer Peripherals International, its most recent earnings (trailing twelve month) is €34.60K, which compared to the previous year’s level, has fallen by a substantial -58.20%. Since these values may be somewhat short-term thinking, I’ve calculated an annualized five-year figure for CPI’s net income, which stands at -€187.52K This means that despite the fact that earnings growth was negative from the prior year, over the longer term, CPI Computer Peripherals International’s earnings have been rising on average.
What’s enabled this growth? Let’s see if it is only due to industry tailwinds, or if CPI Computer Peripherals International has experienced some company-specific growth. Over the past couple of years, CPI Computer Peripherals International increased bottom-line, while its top-line fell, by efficiently managing its costs. This resulted in to a margin expansion and profitability over time. Viewing growth from a sector-level, the GR electronic industry has been growing its average earnings by double-digit 16.99% in the previous year, and 10.04% over the past five years. This shows that whatever tailwind the industry is enjoying, CPI Computer Peripherals International has not been able to reap as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors affecting its business. You should continue to research CPI Computer Peripherals International to get a better picture of the stock by looking at:
- 1. Financial Health: Is CPI’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 trailing twelve months from 30 June 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.