Examining Acciona SA.’s (BME:ANA) 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 ANA’s latest performance announced on 31 March 2018 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for Acciona
How Well Did ANA Perform?
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 blend allows me to analyze different stocks on a more comparable basis, using the latest information. For Acciona, its most recent earnings (trailing twelve month) is €221.13M, which, relative to the prior year’s level, has taken a dive by a non-trivial -39.08%. Since these values are somewhat short-term, I’ve created an annualized five-year value for ANA’s net income, which stands at -€86.93M This shows that while earnings growth was negative against the prior year, in the long run, Acciona’s profits have been rising on average.What’s the driver of this growth? Let’s take a look at whether it is only a result of an industry uplift, or if Acciona has seen some company-specific growth. Over the past few years, Acciona grew bottom-line, while its top-line declined, by effectively controlling its costs. This brought about to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the ES electric utilities industry has been growing, albeit, at a muted single-digit rate of 7.96% over the past twelve months, and 3.25% over the previous five years. This means any tailwind the industry is benefiting from, Acciona has not been able to reap as much as its industry peers.
What does this mean?
Acciona’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors affecting its business. I suggest you continue to research Acciona to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for ANA’s future growth? Take a look at our free research report of analyst consensus for ANA’s outlook.
- Financial Health: Is ANA’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.