In this commentary, I will examine Mordovia Energy Retail Company Public Joint-Stock Company’s (MISX:MRSB) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, as well as how the rest of the electric utilities industry performed. As an investor, I find it beneficial to assess MRSB’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. See our latest analysis for Mordovia Energy Retail Company
Did MRSB beat its long-term earnings growth trend and its industry?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to examine various companies on a similar basis, using the most relevant data points. For Mordovia Energy Retail Company, its latest earnings (trailing twelve month) is RUРУБ35.87M, which, against last year’s level, has moved up by 15.34%. Since these values are fairly myopic, I have computed an annualized five-year figure for Mordovia Energy Retail Company’s net income, which stands at RUРУБ34.59M This means that, generally, Mordovia Energy Retail Company has been able to steadily raise its profits over the last couple of years as well.
How has it been able to do this? Let’s see if it is solely due to industry tailwinds, or if Mordovia Energy Retail Company has seen some company-specific growth. Over the last couple of years, Mordovia Energy Retail Company expanded its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Scanning growth from a sector-level, the RU electric utilities industry has been growing its average earnings by double-digit 17.59% in the past year, and a more muted 9.90% over the past half a decade. This means whatever tailwind the industry is enjoying, Mordovia Energy Retail Company has not been able to realize the gains unlike its industry peers.
What does this mean?
Though Mordovia Energy Retail Company’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Mordovia Energy Retail Company to get a better picture of the stock by looking at:
- Financial Health: Is MRSB’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 MRSB 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 MRSB 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 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.