Examining NEUCA SA’s (WSE:NEU) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess NEU’s latest performance announced on 31 March 2018 and compare these figures to its longer term trend and industry movements. See our latest analysis for NEUCA
Commentary On NEU’s Past Performance
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 method enables me to assess different stocks on a similar basis, using new information. For NEUCA, its most recent trailing-twelve-month earnings is ZŁ95.82M, which, against the previous year’s level, has dropped by -10.35%. Given that these values are somewhat short-term thinking, I’ve estimated an annualized five-year figure for NEU’s earnings, which stands at ZŁ85.29M This shows that despite the fact that earnings declined against the prior year, over the longer term, NEUCA’s profits have been rising on average.
How has it been able to do this? Let’s see if it is merely because of an industry uplift, or if NEUCA has seen some company-specific growth. Over the last couple of years, NEUCA grew its bottom line faster than revenue by efficiently controlling its costs. This brought about a margin expansion and profitability over time. Eyeballing growth from a sector-level, the PL healthcare industry has been enduring some headwinds over the past year, leading to an average earnings drop of -5.51%. This is a major change, given that the industry has constantly been delivering a a solid growth of 24.86% in the past half a decade. This suggests that whatever recent headwind the industry is facing, it’s hitting NEUCA harder than its peers.
What does this mean?
Though NEUCA’s past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. You should continue to research NEUCA to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for NEU’s future growth? Take a look at our free research report of analyst consensus for NEU’s outlook.
- Financial Health: Is NEU’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 March 2018. 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.