Interested In GTL Infrastructure Limited (NSE:GTLINFRA)? Here’s How It Performed Recently
Assessing GTL Infrastructure Limited’s (NSEI:GTLINFRA) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess GTLINFRA’s recent performance announced on 31 March 2017 and evaluate these figures to its longer term trend and industry movements. Check out our latest analysis for GTL Infrastructure
How Well Did GTLINFRA Perform?
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 technique allows me to analyze various companies in a uniform manner using the latest information. For GTL Infrastructure, its latest earnings (trailing twelve month) is -₹6.03B, which, in comparison to last year’s level, has become less negative. Since these values may be fairly nearsighted, I’ve computed an annualized five-year figure for GTL Infrastructure’s net income, which stands at -₹5.76B. This suggests that, GTL Infrastructure has historically performed better than recently, though it seems like earnings are now heading back towards a more favorable position once more.
We can further analyze GTL Infrastructure’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years GTL Infrastructure has seen an annual decline in revenue of -6.60%, 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 IN telecom industry has been enduring severe headwinds in the past twelve months, leading to an average earnings drop of -31.06%. This is a major change, given that the industry has constantly been delivering a a strong growth of 18.16% in the previous five years. This means that even though GTL Infrastructure is presently loss-making, any recent headwind the industry is enduring, the impact on GTL Infrastructure has been softer relative to its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to predict what will occur going forward, and when. The most valuable step is to assess company-specific issues GTL Infrastructure may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research GTL Infrastructure to get a better picture of the stock by looking at:
Financial Health: Is GTLINFRA’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.
Valuation: What is GTLINFRA worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GTLINFRA is currently mispriced by the market.
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 March 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.
