Yahoo Finance How Does Ausdrill Limited’s (ASX:ASL) Earnings Growth Stack Up Against Industry Performance?
For long term investors, improvement in profitability and outperformance against the industry can be important characteristics in a stock. In this article, I will take a look at Ausdrill Limited’s (ASX:ASL) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Ausdrill
How Well Did ASL Perform?
For the most up-to-date info, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique enables me to assess different companies in a uniform manner using the most relevant data points. For Ausdrill, its most recent bottom-line (trailing twelve month) is AU$53.33M, which, relative to the prior year’s figure, has risen by a substantial 99.42%. Since these values are somewhat nearsighted, I have computed an annualized five-year figure for ASL’s earnings, which stands at AU$15.82M This means generally, Ausdrill has been able to consistently grow its profits over the last few years as well.
What’s the driver of this growth? Let’s take a look at if it is solely owing to industry tailwinds, or if Ausdrill has seen some company-specific growth. Although both top-line and bottom-line growth rates in the past few years, were, on average, negative, earnings were more so. While this resulted in a margin contraction, it has lessened Ausdrill’s earnings contraction. Scanning growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 18.18% over the previous year, and a less exciting 8.68% over the last five years. This means that any tailwind the industry is deriving benefit from, Ausdrill is capable of leveraging this to its advantage.
What does this mean?
Though Ausdrill’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Ausdrill to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ASL’s future growth? Take a look at our free research report of analyst consensus for ASL’s outlook.
Financial Health: Is ASL’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.
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.
