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Measuring Beluga Group Public Joint-Stock Company’s (MISX:BELU) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess BELU’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. See our latest analysis for Beluga Group
Could BELU beat the long-term trend and outperform its industry?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to analyze different stocks on a more comparable basis, using new information. For Beluga Group, its most recent bottom-line (trailing twelve month) is RUРУБ588.00M, which compared to the previous year’s level, has rocketed up by over 100%. Since these figures are somewhat nearsighted, I have created an annualized five-year figure for Beluga Group’s net income, which stands at RUРУБ993.50M This suggests that, though earnings growth from last year was positive, over the longer term, Beluga Group’s earnings have been waning on average.
What could be happening here? Well, let’s look at what’s transpiring with margins and if the whole industry is facing the same headwind. Revenue growth over the past couple of years, has been positive, yet earnings growth has been declining. This implies that Beluga Group has been ramping up expenses, which is hurting margins and earnings, and is not a sustainable practice. Viewing growth from a sector-level, the RU beverage industry has been growing its average earnings by double-digit 19.25% in the past twelve months, and a less exciting 5.27% over the past half a decade. This means whatever uplift the industry is enjoying, Beluga Group is capable of leveraging this to its advantage.
What does this mean?
Though Beluga Group’s past data is helpful, it is only one aspect of my investment thesis. Recent positive growth isn’t always indicative of a continued optimistic outlook. There could be factors that are influencing the entire industry thus the high industry growth rate over the same time period. You should continue to research Beluga Group to get a better picture of the stock by looking at:
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Financial Health: Is BELU’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.