Examining Dena Bank’s (NSEI:DENABANK) 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 DENABANK’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. View our latest analysis for Dena Bank
How DENABANK fared against its long-term earnings performance and its industry
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to examine different stocks in a uniform manner using the most relevant data points. For Dena Bank, its latest trailing-twelve-month earnings is -₹8,576.2M, which compared to last year’s figure, has become less negative. Since these figures may be relatively nearsighted, I have created an annualized five-year value for DENABANK’s net income, which stands at ₹1,557.6M.
Additionally, we can examine Dena Bank’s loss by looking at what has been happening in the industry as well as within the company. First, I want to briefly look into the line items. Revenue growth over the last few years has been negative at -14.47%. The key to profitability here is to make sure the company’s cost growth is well-managed. Scanning growth from a sector-level, the IN banks industry has been growing, albeit, at a unexciting single-digit rate of 2.46% in the prior twelve months, and a flatter 0.01% over the previous few years. This means though Dena Bank is presently loss-making, whatever recent headwind the industry is facing, Dena Bank is less exposed compared to its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most useful step is to examine company-specific issues Dena Bank may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Dena Bank to get a better picture of the stock by looking at:
1. Financial Health: Is DENABANK’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. 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.