Assessing Tilt Renewables Limited’s (NZSE:TLT) 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 TLT’s recent performance announced on 31 March 2018 and evaluate these figures to its longer term trend and industry movements. See our latest analysis for Tilt Renewables
How Well Did TLT Perform?
For the purpose of this commentary, I like to use data from the most recent 12 months, 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 blend enables me to analyze many different companies in a uniform manner using the latest information. For Tilt Renewables, its most recent earnings (trailing twelve month) is -AU$2.77M, which, against last year’s level, has turned from positive to negative. Given that these figures may be fairly nearsighted, I’ve created an annualized five-year value for TLT’s net income, which stands at AU$9.36M.
We can further assess Tilt Renewables’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Tilt Renewables’s revenue growth has been fairly subdued, with an annual growth rate of -1.99%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the NZ renewable energy industry has been enduring some headwinds in the prior twelve months, leading to an average earnings drop of -5.18%. This is a major change, given that the industry has constantly been delivering a a notable growth of 12.09% in the past five years. This means that whatever recent headwind the industry is facing, it’s hitting Tilt Renewables harder than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to envisage what will happen in the future and when. The most valuable step is to examine company-specific issues Tilt Renewables may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Tilt Renewables 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 TLT’s future growth? Take a look at our free research report of analyst consensus for TLT’s outlook.
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Financial Health: Is TLT’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 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.