Today I will examine MyBucks SA.’s (DB:MBC) 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 MBC’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 MyBucks
How Well Did MBC Perform?
I prefer to 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 allows me to assess many different companies on a similar basis, using the most relevant data points. For MyBucks, its latest earnings (trailing twelve month) is -€9.68M, which, against the previous year’s figure, has become less negative. Given that these figures may be fairly short-term thinking, I’ve determined an annualized five-year value for MBC’s earnings, which stands at -€3.86M. This means that, MyBucks has historically performed better than recently, despite the fact that it seems like earnings are now heading back in the right direction again.We can further analyze MyBucks’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years MyBucks’s top-line has risen by 22.69% on average, indicating that the company is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses. Scanning growth from a sector-level, the DE consumer finance industry has been growing, albeit, at a unexciting single-digit rate of 9.74% over the past twelve months, and 6.77% over the past five years. This shows that whatever tailwind the industry is profiting from, MyBucks has not been able to leverage it as much as its industry peers.
What does this mean?
MyBucks’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 insightful step is to examine company-specific issues MyBucks may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research MyBucks to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for MBC’s future growth? Take a look at our free research report of analyst consensus for MBC’s outlook.
- 2. Financial Health: Is MBC’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.
- 3. 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.