In This Article:
In this article, I will take a look at Insr Insurance Group ASA’s (OB:INSR) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, along with how the rest of INSR’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. Check out our latest analysis for Insr Insurance Group
Was INSR weak performance lately part of a long-term decline?
I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This enables me to analyze many different companies on a similar basis, using the most relevant data points. For Insr Insurance Group, its most recent earnings (trailing twelve month) is -ØRE211.76M, which, against the previous year’s figure, has become more negative. Given that these figures may be relatively myopic, I have computed an annualized five-year value for Insr Insurance Group’s earnings, which stands at -ØRE148.16M. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.
We can further assess Insr Insurance Group’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Insr Insurance Group’s top-line has grown by 23.08% on average, signalling that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Eyeballing growth from a sector-level, the NO insurance industry has been growing, albeit, at a muted single-digit rate of 9.57% in the prior year, and 8.42% over the past five years. This means that whatever uplift the industry is profiting from, Insr Insurance Group has not been able to gain as much as its average peer.
What does this mean?
Though Insr Insurance Group’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to predict what will occur going forward, and when. The most useful step is to assess company-specific issues Insr Insurance Group may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Insr Insurance Group to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for INSR’s future growth? Take a look at our free research report of analyst consensus for INSR’s outlook.
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Financial Health: Is INSR’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.
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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.