- United Kingdom
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- Diversified Financial
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- AIM:PCIP
Should PCI-PAL PLC's (LON:PCIP) Recent Earnings Decline Worry You?
Analyzing PCI-PAL PLC's (AIM:PCIP) 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 PCIP's recent performance announced on 31 December 2017 and compare these figures to its long-term trend and industry movements. View our latest analysis for PCI-PAL
Was PCIP's recent earnings decline worse than the long-term trend and the 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 blend enables me to analyze different companies on a more comparable basis, using the latest information. For PCI-PAL, its latest trailing-twelve-month earnings is -UK£2.71M, which, relative to the prior year's figure, has become more negative. Given that these values may be fairly short-term, I’ve determined an annualized five-year value for PCIP's net income, which stands at -UK£347.49K. This doesn’t seem to paint a better picture, since earnings seem to have consistently been getting more and more negative over time.
What does this mean?
PCI-PAL'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 predict what will happen in the future and when. The most useful step is to assess company-specific issues PCI-PAL may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research PCI-PAL to get a better picture of the stock by looking at:
- 1. Financial Health: Is PCIP’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.
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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About AIM:PCIP
PCI-PAL
Through its subsidiaries, engages in the provision of payment card industry (PCI) compliance solutions and telephony services primarily in the United Kingdom, the United States, Canada, rest of Europe, and the Asia Pacific.
Reasonable growth potential and slightly overvalued.
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