In This Article:
Today I will examine Q & M Dental Group (Singapore) Limited’s (SGX:QC7) latest earnings update (31 March 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of QC7’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. Check out our latest analysis for Q & M Dental Group (Singapore)
Did QC7 perform worse than its track record and industry?
I 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 allows me to assess different stocks on a similar basis, using the latest information. For Q & M Dental Group (Singapore), its most recent earnings (trailing twelve month) is S$24.53M, which, against the previous year’s level, has fallen by -13.74%. Since these figures may be somewhat short-term, I have estimated an annualized five-year figure for Q & M Dental Group (Singapore)’s net income, which stands at S$12.51M This means even though earnings growth was negative against the previous year, over time, Q & M Dental Group (Singapore)’s earnings have been rising on average.
How has it been able to do this? Let’s see whether it is solely due to industry tailwinds, or if Q & M Dental Group (Singapore) has experienced some company-specific growth. Over the past few years, Q & M Dental Group (Singapore) increased its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Eyeballing growth from a sector-level, the SG healthcare industry has been relatively flat in terms of earnings growth over the previous few years. This means that any recent headwind the industry is experiencing, it’s hitting Q & M Dental Group (Singapore) harder than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors impacting its business. You should continue to research Q & M Dental Group (Singapore) to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for QC7’s future growth? Take a look at our free research report of analyst consensus for QC7’s outlook.
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Financial Health: Is QC7’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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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 2018. 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.