Assessing Urja Global Limited’s (NSEI:URJAGLOBA) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess URJAGLOBA’s latest performance announced on 31 March 2017 and evaluate these figures to its historical trend and industry movements. See our latest analysis for Urja Global
Did URJAGLOBA perform worse than its track record and industry?
To account for any quarterly or half-yearly updates, 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 blend enables me to analyze different stocks on a more comparable basis, using new information. For Urja Global, its most recent earnings (trailing twelve month) is ₹10.3M, which, against last year’s figure, has fallen by -3.14%. Since these values are relatively short-term thinking, I’ve calculated an annualized five-year figure for URJAGLOBA’s earnings, which stands at ₹6.3M. This shows that though earnings declined against the previous year, in the long run, Urja Global’s profits have been rising on average.
What’s the driver of this growth? Well, let’s take a look at whether it is solely because of an industry uplift, or if Urja Global has experienced some company-specific growth. In the past few years, Urja Global top-line expansion has outstripped earnings and the growth rate of expenses. Though this resulted in a margin contraction, it has moderated Urja Global’s earnings contraction. Eyeballing growth from a sector-level, the IN semiconductor industry has been enduring some headwinds over the previous few years, leading to an average earnings drop of -20.84% in the most recent year. This suggests that any recent headwind the industry is enduring, Urja Global is relatively better-cushioned than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies are profitable, but have capricious earnings, can have many factors influencing its business. I suggest you continue to research Urja Global to get a more holistic view of the stock by looking at:
1. Financial Health: Is URJAGLOBA’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.
2. Valuation: What is URJAGLOBA 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 URJAGLOBA is currently mispriced by the market.