Measuring Exillon Energy plc’s (LSE:EXI) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess EXI’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. See our latest analysis for Exillon Energy
Commentary On EXI’s Past Performance
For the purpose of this commentary, I like to use data from the most recent 12 months, 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 technique enables me to examine various companies in a uniform manner using the most relevant data points. For Exillon Energy, its latest trailing-twelve-month earnings is US$47.65M, which, relative to the prior year’s level, has jumped up by 17.62%. Since these values are somewhat myopic, I’ve estimated an annualized five-year figure for Exillon Energy’s net income, which stands at US$32.53M This suggests that, generally, Exillon Energy has been able to gradually improve its profits over the last few years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is solely attributable to industry tailwinds, or if Exillon Energy has seen some company-specific growth. Over the last few years, Exillon Energy expanded bottom-line, while its top-line fell, by effectively managing its costs. This has caused to a margin expansion and profitability over time. Scanning growth from a sector-level, the UK oil and gas industry has been growing its average earnings by double-digit 36.36% in the previous year, and a less exciting 5.07% over the past five. This suggests that any uplift the industry is benefiting from, Exillon Energy has not been able to gain as much as its average peer.
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? I suggest you continue to research Exillon Energy to get a better picture of the stock by looking at:
- Financial Health: Is EXI’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 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.