Interested In Intersport Polska SA. (WSE:IPO)? Here’s How It Performed Recently
After reading Intersport Polska SA.’s (WSE:IPO) most recent earnings announcement (30 September 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways. See our latest analysis for Intersport Polska
How Did IPO’s Recent Performance Stack Up Against Its Past?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This allows me to assess many different companies on a more comparable basis, using the most relevant data points. For Intersport Polska, its most recent bottom-line (trailing twelve month) is -ZŁ13.27M, which compared to last year’s level, has become more negative. Given that these figures are somewhat nearsighted, I have created an annualized five-year value for Intersport Polska’s earnings, which stands at -ZŁ4.79M. This doesn’t seem to paint a better picture, since earnings seem to have steadily been getting more and more negative over time.
We can further evaluate Intersport Polska’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Intersport Polska’s revenue growth has been somewhat muted, with an annual growth rate of -1.34%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the PL specialty retail industry has been growing, albeit, at a muted single-digit rate of 2.99% over the prior twelve months, and 6.97% over the last five years. This means any near-term headwind the industry is enduring, it’s hitting Intersport Polska harder than its peers.
What does this mean?
Intersport Polska’s track record can be a valuable insight into its earnings performance, but it certainly 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 useful step is to examine company-specific issues Intersport Polska may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Intersport Polska to get a better picture of the stock by looking at:
Financial Health: Is IPO’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 30 September 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.
