Measuring Dino Polska SA.’s (WSE:DNP) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess DNP’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. See our latest analysis for Dino Polska
Could DNP beat the long-term trend and outperform its industry?
To account for any quarterly or half-yearly updates, I use 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 blend enables me to examine different companies in a uniform manner using the most relevant data points. For Dino Polska, its latest trailing-twelve-month earnings is ZŁ213.60M, which, against last year’s figure, has climbed up by 41.26%. Since these values may be fairly myopic, I’ve created an annualized five-year figure for DNP’s earnings, which stands at ZŁ151.02M This means that, generally, Dino Polska has been able to increasingly improve its net income over the past couple of years as well.
What’s the driver of this growth? Let’s see if it is merely a result of industry tailwinds, or if Dino Polska has seen some company-specific growth. In the last few years, Dino Polska increased its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Looking at growth from a sector-level, the PL consumer retailing industry has been growing its average earnings by double-digit 34.67% over the past twelve months, and 11.44% over the past half a decade. This suggests that whatever tailwind the industry is gaining from, Dino Polska is able to leverage this to its advantage.
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 Dino Polska to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for DNP’s future growth? Take a look at our free research report of analyst consensus for DNP’s outlook.
- Financial Health: Is DNP’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.