When Poltronic SA. (WSE:PTN) released its most recent earnings update (30 September 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how Poltronic performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see PTN has performed. See our latest analysis for Poltronic
Commentary On PTN’s Past Performance
I look at 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 blend enables me to analyze different companies on a similar basis, using the most relevant data points. For Poltronic, its most recent earnings (trailing twelve month) is ZŁ235.20K, which, relative to the previous year’s level, has moved up by 41.18%. Since these values are somewhat short-term, I have estimated an annualized five-year value for PTN’s net income, which stands at -ZŁ113.88K This means that, generally, Poltronic has been able to gradually grow its profits over the last couple of years as well.
How has it been able to do this? Well, let’s take a look at if it is merely attributable to industry tailwinds, or if Poltronic has experienced some company-specific growth. Over the past few years, Poltronic expanded bottom-line, while its top-line fell, by successfully controlling its costs. This resulted in to a margin expansion and profitability over time. Inspecting growth from a sector-level, the PL trade distributors industry has been relatively flat in terms of earnings growth over the prior year, levelling off from a robust 10.26% over the last five years. This means that any near-term headwind the industry is enduring, Poltronic is relatively better-cushioned than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Poltronic to get a more holistic view of the stock by looking at:
- Financial Health: Is PTN’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.