MásMóvil Ibercom SA.’s (BME:MAS) Earnings Dropped -77.02%, Did Its Industry Show Weakness Too?
When MásMóvil Ibercom SA. (BME:MAS) announced its most recent earnings (31 December 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 MásMóvil Ibercom 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 MAS has performed. Check out our latest analysis for MásMóvil Ibercom
Was MAS’s weak performance lately a part of a long-term decline?
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 enables me to analyze different companies on a more comparable basis, using new information. For MásMóvil Ibercom, its most recent earnings (trailing twelve month) is -€102.76M, which, against the prior year’s figure, has become more negative. Since these figures are relatively nearsighted, I have calculated an annualized five-year figure for MAS’s earnings, which stands at -€28.54M. This doesn’t look much better, as earnings seem to have consistently been getting more and more negative over time.
We can further analyze MásMóvil Ibercom’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade MásMóvil Ibercom’s top-line has increased by 65.44% on average, indicating that the company is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Inspecting growth from a sector-level, the ES telecom industry has been enduring some headwinds over the last few years, leading to an average earnings drop of -17.28% in the most recent year. This shows that whatever recent the industry is facing, it’s hitting MásMóvil Ibercom harder than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will occur going forward, and when. The most insightful step is to assess company-specific issues MásMóvil Ibercom may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research MásMóvil Ibercom to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
1. Future Outlook: What are well-informed industry analysts predicting for MAS’s future growth? Take a look at this free research report of analyst consensus for MAS’s outlook.
2. Financial Health: Is MAS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a 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.
