In This Article:
Today I will examine Moury Construct SA’s (ENXTBR:MOUR) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of MOUR’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. View our latest analysis for Moury Construct
Despite a decline, did MOUR underperform the long-term trend and the industry?
For the most up-to-date info, I use 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 analyze different stocks in a uniform manner using the latest information. For Moury Construct, its most recent bottom-line (trailing twelve month) is €3.68M, which compared to the previous year’s level, has dropped by -7.07%. Given that these values may be fairly myopic, I’ve calculated an annualized five-year value for MOUR’s net income, which stands at €2.41M This shows that though earnings declined from the prior year, over the long run, Moury Construct’s profits have been increasing on average.
What’s enabled this growth? Let’s see if it is merely a result of industry tailwinds, or if Moury Construct has seen some company-specific growth. Over the last couple of years, Moury Construct expanded 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 BE construction industry has been growing, albeit, at a subdued single-digit rate of 9.66% in the prior year, and 6.51% over the last five years. This shows that whatever uplift the industry is deriving benefit from, Moury Construct has not been able to reap as much as its average peer.
What does this mean?
Though Moury Construct’s past data is helpful, it is only one aspect of my investment thesis. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. I recommend you continue to research Moury Construct to get a more holistic view of the stock by looking at:
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Financial Health: Is MOUR’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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Valuation: What is MOUR 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 MOUR is currently mispriced by the market.
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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 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.