For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Kuehne + Nagel International AG’s (SWX:KNIN) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. View our latest analysis for Kuehne + Nagel International
Could KNIN beat the long-term trend and outperform its industry?
I prefer to use the ‘latest twelve-month’ data, 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 technique enables me to analyze different stocks in a uniform manner using new information. For Kuehne + Nagel International, its latest earnings (trailing twelve month) is CHF737.00M, which, relative to last year’s figure, has risen by a fairly subdued 2.65%. Since these figures may be relatively myopic, I have created an annualized five-year value for KNIN’s net income, which stands at CHF627.70M This shows that, generally, Kuehne + Nagel International has been able to increasingly raise its earnings over the last couple of years as well.
What’s enabled this growth? Let’s see if it is merely owing to industry tailwinds, or if Kuehne + Nagel International has seen some company-specific growth. In the past few years, Kuehne + Nagel International grew its bottom line faster than revenue by efficiently controlling its costs. This has led to a margin expansion and profitability over time. Looking at growth from a sector-level, the CH shipping industry has been growing, albeit, at a subdued single-digit rate of 9.22% in the past year, and 4.12% over the past five years. This means whatever tailwind the industry is profiting from, Kuehne + Nagel International has not been able to realize the gains unlike its average peer.
What does this mean?
Kuehne + Nagel International’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Kuehne + Nagel International gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Kuehne + Nagel International to get a better picture of the stock by looking at:
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1. Future Outlook: What are well-informed industry analysts predicting for KNIN’s future growth? Take a look at our free research report of analyst consensus for KNIN’s outlook.
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2. Financial Health: Is KNIN’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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3. 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.