When Zaklady Tluszczowe Kruszwica SA.’s (WSE:KSW) announced its latest earnings (30 September 2017), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Zaklady Tluszczowe Kruszwica’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not KSW actually performed well. Below is a quick commentary on how I see KSW has performed. View our latest analysis for Zaklady Tluszczowe Kruszwica
Were KSW’s earnings stronger than its past performances and the industry?
I like to 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 method allows me to analyze various companies in a uniform manner using new information. For Zaklady Tluszczowe Kruszwica, its most recent bottom-line (trailing twelve month) is ZŁ99.05M, which, relative to the previous year’s level, has increased by a non-trivial 72.42%. Given that these values may be relatively short-term, I have determined an annualized five-year figure for KSW’s earnings, which stands at ZŁ71.28M This suggests that, generally, Zaklady Tluszczowe Kruszwica has been able to gradually grow its profits over the past couple of years as well.
What’s the driver of this growth? Let’s take a look at if it is merely owing to industry tailwinds, or if Zaklady Tluszczowe Kruszwica has seen some company-specific growth. Over the past few years, Zaklady Tluszczowe Kruszwica grew its bottom line faster than revenue by successfully controlling its costs. This has led to a margin expansion and profitability over time. Looking at growth from a sector-level, the PL food industry has been growing its average earnings by double-digit 10.74% in the previous twelve months, and a less exciting 5.18% over the past five years. This suggests that whatever uplift the industry is enjoying, Zaklady Tluszczowe Kruszwica is capable of leveraging this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. While Zaklady Tluszczowe Kruszwica has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Zaklady Tluszczowe Kruszwica to get a better picture of the stock by looking at:
-
1. Financial Health: Is KSW’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 30 September 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.