Yahoo Finance Are Earnings Prospects Improving For Loss-Making AEGEK SA.’s (ATH:AEGEK)?
For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. Investors may find my commentary, albeit very high-level and brief, on AEGEK SA. (ATSE:AEGEK) useful as an attempt to give more color around how AEGEK is currently performing. See our latest analysis for AEGEK
Commentary On AEGEK’s Past Performance
I look at 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 method allows me to examine various companies on a more comparable basis, using the most relevant data points. For AEGEK, its latest trailing-twelve-month earnings is -€2.43M, which, relative to last year’s level, has become less negative. Given that these figures may be relatively short-term, I have calculated an annualized five-year figure for AEGEK’s net income, which stands at -€7.28M. This suggests that, while net income is negative, it has become less negative over the years.
We can further assess AEGEK’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade AEGEK’s top-line has grown by 24.19% on average, indicating that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Inspecting growth from a sector-level, the GR construction industry has been increasing growth, more than doubling average earnings in the prior year, and a solid 27.84% over the past half a decade. This means whatever tailwind the industry is profiting from, AEGEK has not been able to reap as much as its average peer.
What does this mean?
AEGEK’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most valuable step is to assess company-specific issues AEGEK may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research AEGEK to get a better picture of the stock by looking at:
Financial Health: Is AEGEK’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.
Valuation: What is AEGEK 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 AEGEK is currently mispriced by the market.
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.