Investors with a long-term horizong may find it valuable to assess Meier Tobler Group AG’s (SWX:MTG) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how Meier Tobler Group is currently performing. Check out our latest analysis for Meier Tobler Group
Did MTG perform worse than its track record and industry?
I prefer to use 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 enables me to analyze many different companies in a uniform manner using the latest information. For Meier Tobler Group, its latest earnings (trailing twelve month) is -CHF3.06M, which compared to the previous year’s figure, has turned from positive to negative. Since these figures may be fairly short-term, I’ve estimated an annualized five-year value for Meier Tobler Group’s earnings, which stands at CHF24.50M.We can further analyze Meier Tobler Group’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Meier Tobler Group has seen an annual decline in revenue of -14.93%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the CH machinery industry has been growing its average earnings by double-digit 15.57% over the past year, and a more muted 6.55% over the previous five years. This means any uplift the industry is profiting from, Meier Tobler Group has not been able to reap as much as its average peer.
What does this mean?
Meier Tobler Group’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 envisage what will occur going forward, and when. The most valuable step is to examine company-specific issues Meier Tobler Group may be facing and whether management guidance has dependably been met in the past. You should continue to research Meier Tobler Group to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MTG’s future growth? Take a look at our free research report of analyst consensus for MTG’s outlook.
- Financial Health: Is MTG’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.