Where DNA Oyj (HEL:DNA) Stands In Terms Of Earnings Growth Against Its Industry
Assessing DNA Oyj’s (HLSE:DNA) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess DNA’s recent performance announced on 31 December 2017 and evaluate these figures to its longer term trend and industry movements. See our latest analysis for DNA Oyj
Did DNA’s recent earnings growth beat the long-term trend and the industry?
I prefer to use the ‘latest twelve-month’ data, 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 method enables me to assess various companies on a similar basis, using the most relevant data points. For DNA Oyj, its latest trailing-twelve-month earnings is €93.09M, which, against last year’s level, has jumped up by 42.75%. Since these figures may be relatively myopic, I have computed an annualized five-year figure for DNA Oyj’s earnings, which stands at €42.83M This means that, generally, DNA Oyj has been able to increasingly improve its net income over the last few years as well.
What’s the driver of this growth? Let’s see whether it is only a result of industry tailwinds, or if DNA Oyj has experienced some company-specific growth. In the past few years, DNA Oyj increased its bottom line faster than revenue by successfully controlling its costs. This has led to a margin expansion and profitability over time. Viewing growth from a sector-level, the FI telecom industry has been growing, albeit, at a unexciting single-digit rate of 6.89% over the past twelve months, and 4.01% over the last five years. This shows that any uplift the industry is enjoying, DNA Oyj is able to amplify this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While DNA Oyj has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research DNA Oyj to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for DNA’s future growth? Take a look at our free research report of analyst consensus for DNA’s outlook.
2. Financial Health: Is DNA’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.
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 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.
