Yahoo Finance Did Stoppoint SA.’s (WSE:STO) Earnings Growth Outperform The Industry?
In this article, I will take a look at Stoppoint SA.’s (WSE:STO) most recent earnings update (31 December 2017) and compare these latest figures against its performance over the past few years, along with how the rest of STO’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. See our latest analysis for Stoppoint
Did STO beat its long-term earnings growth trend and its industry?
I like to 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 analyze many different companies on a more comparable basis, using the most relevant data points. For Stoppoint, its most recent earnings (trailing twelve month) is -ZŁ3.09K, which, against the prior year’s figure, has become less negative. Given that these values are somewhat short-term, I’ve created an annualized five-year figure for STO’s earnings, which stands at -ZŁ528.20K. This suggests that, despite the fact that net income is negative, it has become less negative over the years.
We can further analyze Stoppoint’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Stoppoint’s top-line has increased by 26.78% on average, signalling that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Scanning growth from a sector-level, the PL internet industry has been growing, albeit, at a muted single-digit rate of 9.78% in the prior year, and a substantial 21.93% over the past half a decade. This shows that, while Stoppoint is presently unprofitable, it may have been aided by industry tailwinds, moving earnings towards to right direction.
What does this mean?
Stoppoint’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 hard to envisage what will occur going forward, and when. The most valuable step is to examine company-specific issues Stoppoint may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Stoppoint to get a more holistic view of the stock by looking at:
Financial Health: Is STO’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.
