Analyzing Gusbourne PLC’s (AIM:GUS) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess GUS’s recent performance announced on 30 June 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for Gusbourne
How Did GUS’s Recent Performance Stack Up Against Its Past?
For the most up-to-date info, I 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 enables me to assess many different companies on a similar basis, using the most relevant data points. For Gusbourne, its most recent bottom-line (trailing twelve month) is -UK£1.65M, which, in comparison to last year’s level, has become more negative. Given that these figures may be relatively nearsighted, I’ve calculated an annualized five-year value for Gusbourne’s earnings, which stands at -UK£824.22K. This doesn’t look much better, as earnings seem to have steadily been getting more and more negative over time.We can further analyze Gusbourne’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Gusbourne’s top-line has grown by 31.41% 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 UK beverage industry has been enduring some headwinds in the past year, leading to an average earnings drop of -2.99%. This is a momentous change, given that the industry has been delivering a positive rate of 9.66%, on average, over the last five years. This shows that whatever recent headwind the industry is facing, it’s hitting Gusbourne harder than its peers.
What does this mean?
Though Gusbourne’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues Gusbourne may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Gusbourne to get a better picture of the stock by looking at:
- 1. Financial Health: Is GUS’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.