Yahoo Finance Did PGG Wrightson Limited’s (NZSE:PGW) Recent Earnings Growth Beat The Trend?
When PGG Wrightson Limited (NZSE:PGW) released its most recent earnings update (31 December 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well PGG Wrightson has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see PGW has performed. Check out our latest analysis for PGG Wrightson
Could PGW beat the long-term trend and outperform its industry?
PGW recently turned a profit of NZ$45.09m (most recent trailing twelve-months) compared to its average loss of -NZ$13.17m over the past five years.
Over the last few years, PGG Wrightson grew bottom-line, while its top-line fell, by efficiently controlling its costs. This brought about to a margin expansion and profitability over time. Scanning growth from a sector-level, the NZ food industry has been
In terms of returns from investment, PGG Wrightson has not invested its equity funds well, leading to a 15.63% return on equity (ROE), below the sensible minimum of 20%.
What does this mean?
Though PGG Wrightson’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as PGG Wrightson gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research PGG Wrightson to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for PGW’s future growth? Take a look at our free research report of analyst consensus for PGW’s outlook.
Financial Health: Is PGW’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.
