Today I will take a look at Ryazan Energy Retail Company Public Joint-Stock Company’s (MISX:RZSB) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, as well as how the rest of the electric utilities industry performed. As an investor, I find it beneficial to assess RZSB’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time. View our latest analysis for Ryazan Energy Retail Company

How RZSB fared against its long-term earnings performance and its industry

I prefer to use data from the most recent 12 months, 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 technique allows me to assess many different companies in a uniform manner using the most relevant data points. For Ryazan Energy Retail Company, its most recent earnings (trailing twelve month) is RUРУБ74.70M, which compared to the previous year’s figure, has rocketed up by over 100%. Given that these values are relatively short-term, I have computed an annualized five-year figure for RZSB’s net income, which stands at RUРУБ29.26M This means on average, Ryazan Energy Retail Company has been able to increasingly improve its earnings over the last couple of years as well.

How has it been able to do this? Let’s take a look at if it is solely because of an industry uplift, or if Ryazan Energy Retail Company has seen some company-specific growth. In the last couple of years, Ryazan Energy Retail Company top-line expansion has outpaced earnings and the growth rate of expenses. Though this brought about a margin contraction, it has lessened Ryazan Energy Retail Company’s earnings contraction. Inspecting growth from a sector-level, the RU electric utilities industry has been growing its average earnings by double-digit 12.44% over the prior year, and a more muted 3.06% over the past half a decade. This means that any uplift the industry is profiting from, Ryazan Energy Retail Company is capable of amplifying this to its advantage.

What does this mean?

Ryazan Energy Retail Company’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Ryazan Energy Retail Company 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 Ryazan Energy Retail Company to get a more holistic view of the stock by looking at:

• 1. Financial Health: Is RZSB’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 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.