Assessing Sun TV Network Limited’s (NSEI:SUNTV) 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 SUNTV’s recent performance announced on 31 March 2017 and evaluate these figures to its longer term trend and industry movements. Check out our latest analysis for Sun TV Network

Did SUNTV beat its long-term earnings growth trend and its industry?

I like to use data from the most recent 12 months, 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 method allows me to examine various companies in a uniform manner using new information. For Sun TV Network, its latest trailing-twelve-month earnings is ₹10.30B, which, relative to the previous year’s figure, has risen by 11.76%. Since these values may be somewhat short-term thinking, I have computed an annualized five-year figure for Sun TV Network’s net income, which stands at ₹8.14B This means generally, Sun TV Network has been able to steadily grow its net income over the last couple of years as well.

What’s enabled this growth? Well, let’s take a look at whether it is merely owing to industry tailwinds, or if Sun TV Network has seen some company-specific growth. Over the past couple of years, Sun TV Network expanded its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Eyeballing growth from a sector-level, the IN media industry has been growing its average earnings by double-digit 11.76% in the prior year, and 18.34% over the past half a decade.

What does this mean?

Though Sun TV Network’s past data is helpful, it is only one aspect of my investment thesis. While Sun TV Network has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Sun TV Network to get a better picture of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for SUNTV’s future growth? Take a look at our free research report of analyst consensus for SUNTV’s outlook.

2. Financial Health: Is SUNTV’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.

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 March 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.