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Assessing Joint-Stock Company Krasnyj Octyabr’s (MISX:KROT) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess KROT’s recent performance announced on 30 September 2017 and evaluate these figures to its long-term trend and industry movements. View our latest analysis for Krasnyj Octyabr
Commentary On KROT’s Past Performance
I look at the ‘latest twelve-month’ data, 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 method allows me to assess different stocks on a more comparable basis, using new information. For Krasnyj Octyabr, its most recent bottom-line (trailing twelve month) is RUРУБ823.24M, which compared to the previous year’s figure, has increased by a relatively unexciting 7.46%. Given that these figures are fairly myopic, I’ve created an annualized five-year figure for KROT’s earnings, which stands at RUРУБ617.33M This shows that, on average, Krasnyj Octyabr has been able to steadily raise its bottom line over the past couple of years as well.
What’s the driver of this growth? Let’s take a look at whether it is only owing to an industry uplift, or if Krasnyj Octyabr has seen some company-specific growth. The hike in earnings seems to be driven by a robust top-line increase overtaking its growth rate of costs. Though this has caused a margin contraction, it has made Krasnyj Octyabr more profitable. Scanning growth from a sector-level, the RU food industry has been growing, albeit, at a muted single-digit rate of 7.46% over the prior twelve months, and a substantial 11.96% over the last five years.
What does this mean?
Krasnyj Octyabr’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research Krasnyj Octyabr to get a more holistic view of the stock by looking at:
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1. Financial Health: Is KROT’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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2. Valuation: What is KROT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KROT is currently mispriced by the market.
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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 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.