MNI Spólka Akcyjna (WSE:MNI): Should The Recent Earnings Drop Worry You?
In this article, I will take a look at MNI Spólka Akcyjna’s (WSE:MNI) most recent earnings update (30 September 2017) and compare these latest figures against its performance over the past few years, along with how the rest of MNI’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. Check out our latest analysis for MNI Spólka Akcyjna
Was MNI weak performance lately part of a long-term decline?
I look at data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This enables me to examine various companies on a similar basis, using the latest information. For MNI Spólka Akcyjna, its latest trailing-twelve-month earnings is -ZŁ94.67M, which, relative to the prior year’s figure, has become more negative. Since these figures may be relatively myopic, I have determined an annualized five-year value for MNI’s earnings, which stands at -ZŁ14.17M. This doesn’t look much better, as earnings seem to have consistently been getting more and more negative over time.
We can further evaluate MNI Spólka Akcyjna’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years MNI Spólka Akcyjna has seen an annual decline in revenue of -21.82%, 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 PL telecom industry has been growing, albeit, at a muted single-digit rate of 4.66% over the past year, . This is a change from a volatile drop of -5.17% in the previous few years. This suggests that whatever near-term the industry is enduring, it’s hitting MNI Spólka Akcyjna harder than its peers.
What does this mean?
Though MNI Spólka Akcyjna’s past data is helpful, it is only one aspect of my investment thesis. 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 MNI Spólka Akcyjna may be facing and whether management guidance has dependably been met in the past. You should continue to research MNI Spólka Akcyjna to get a more holistic view of the stock by looking at:
1. Financial Health: Is MNI’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. Valuation: What is MNI 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 MNI is currently mispriced by the market.
3. 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.
