Did mybet Holding SE’s (FRA:A2LQ00) Earnings Growth Outperform The Industry?

Assessing mybet Holding SE’s (DB:A2LQ00) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess A2LQ00’s recent performance announced on 30 September 2017 and evaluate these figures to its long-term trend and industry movements. Check out our latest analysis for mybet Holding

How A2LQ00 fared against its long-term earnings performance and its 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 assess different stocks on a similar basis, using the latest information. For mybet Holding, its most recent bottom-line (trailing twelve month) is -€2.90M, which, against the prior year’s level, has become less negative. Given that these figures are fairly short-term, I have calculated an annualized five-year value for A2LQ00’s net income, which stands at -€3.40M. This suggests that, even though net income is negative, it has become less negative over the years.

DB:A2LQ00 Income Statement May 16th 18
DB:A2LQ00 Income Statement May 16th 18
We can further analyze mybet Holding’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years mybet Holding has seen an annual decline in revenue of -6.21%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the DE hospitality industry has been growing its average earnings by double-digit 22.12% over the past year, and 15.13% over the past five. This suggests that, although mybet Holding is presently loss-making, it may have benefited from industry tailwinds, moving earnings into a more favorable position.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will happen in the future and when. The most useful step is to assess company-specific issues mybet Holding may be facing and whether management guidance has dependably been met in the past. You should continue to research mybet Holding to get a more holistic view of the stock by looking at:

  1. Financial Health: Is A2LQ00’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.
  2. 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 September 2017. This may not be consistent with full year annual report figures.