Where Münchener Tierpark Hellabrunn AG’s (MUN:MTP) Earnings Growth Stands Against Its Industry
Examining how Münchener Tierpark Hellabrunn AG (MUN:MTP) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Münchener Tierpark Hellabrunn is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its hospitality industry peers. View our latest analysis for Münchener Tierpark Hellabrunn
Was MTP’s weak performance lately a part of a long-term decline?
To account for any quarterly or half-yearly updates, I 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 method allows me to analyze many different companies in a uniform manner using the latest information. For Münchener Tierpark Hellabrunn, its latest earnings (trailing twelve month) is €1.30M, which, in comparison to the prior year’s figure, has fallen by -10.80%. Since these values are fairly myopic, I have calculated an annualized five-year figure for MTP’s earnings, which stands at €1.30M This shows that though earnings declined from the previous year, over a longer period of time, Münchener Tierpark Hellabrunn’s profits have been rising on average.
What’s the driver of this growth? Well, let’s take a look at whether it is merely due to industry tailwinds, or if Münchener Tierpark Hellabrunn has experienced some company-specific growth. Over the past couple of years, Münchener Tierpark Hellabrunn expanded its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Scanning growth from a sector-level, the DE hospitality industry has been growing its average earnings by double-digit 19.54% over the previous twelve months, and 13.20% over the last five years. This means that any tailwind the industry is deriving benefit from, Münchener Tierpark Hellabrunn has not been able to reap as much as its industry peers.
What does this mean?
Münchener Tierpark Hellabrunn’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I recommend you continue to research Münchener Tierpark Hellabrunn to get a more holistic view of the stock by looking at:
1. Financial Health: Is MTP’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.
2. 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 2016. 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.
