Today I will examine Stavropolenergosbyt Public Joint-Stock Company’s (MISX:STSB) latest earnings update (31 December 2017) and compare these figures against its performance over the past couple of years, in addition to how the rest of STSB’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. Check out our latest analysis for Stavropolenergosbyt
How Did STSB’s Recent Performance Stack Up Against Its Past?
To account for any quarterly or half-yearly updates, I 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 method enables me to analyze different stocks in a uniform manner using the latest information. For Stavropolenergosbyt, its latest trailing-twelve-month earnings is RUРУБ62.79M, which, relative to the prior year’s figure, has risen by a fairly muted 4.64%. Given that these figures are somewhat nearsighted, I have computed an annualized five-year figure for STSB’s net income, which stands at -RUРУБ4.85M This means that, on average, Stavropolenergosbyt has been able to steadily grow its bottom line over the last few years as well.
What’s enabled this growth? Well, let’s take a look at whether it is only due to an industry uplift, or if Stavropolenergosbyt has seen some company-specific growth. Over the last couple of years, Stavropolenergosbyt grew its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Inspecting growth from a sector-level, the RU electric utilities industry has been growing its average earnings by double-digit 41.09% in the previous year, and 12.62% over the last five years. This shows that any uplift the industry is benefiting from, Stavropolenergosbyt has not been able to realize the gains unlike its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Stavropolenergosbyt gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Stavropolenergosbyt to get a more holistic view of the stock by looking at:
- Financial Health: Is STSB’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.