Yahoo Finance

Measuring Sumol+Compal SA.’s (ENXTLS:SUCO) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess SUCO’s recent performance announced on 30 June 2017 and compare these figures to its historical trend and industry movements. See our latest analysis for Sumol+Compal

Were SUCO’s earnings stronger than its past performances and the industry?

I prefer to 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 enables me to assess different companies in a uniform manner using the latest information. For Sumol+Compal, its most recent bottom-line (trailing twelve month) is €8.71M, which compared to the previous year’s level, has climbed up by more than double. Given that these values are fairly nearsighted, I have created an annualized five-year value for Sumol+Compal’s earnings, which stands at €4.59M This means generally, Sumol+Compal has been able to steadily improve its earnings over the past couple of years as well.

What’s the driver of this growth? Let’s take a look at if it is only attributable to an industry uplift, or if Sumol+Compal has seen some company-specific growth. Over the last couple of years, Sumol+Compal grew its bottom line faster than revenue by efficiently controlling its costs. This resulted in a margin expansion and profitability over time. Viewing growth from a sector-level, the PT beverage industry has been growing its average earnings by double-digit 19.44% over the past year, and a more muted 3.93% over the past half a decade. This suggests that any tailwind the industry is profiting from, Sumol+Compal is capable of amplifying this to its advantage.

What does this mean?

While past data is useful, it doesn’t tell the whole story. While Sumol+Compal has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Sumol+Compal to get a better picture of the stock by looking at:

• 1. Financial Health: Is SUCO’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 SUCO 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 SUCO is currently mispriced by the market.

• 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 June 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.