After looking at J Boutaris & Son Holding S.A.’s (ATSE:MPK) latest earnings announcement (30 June 2017), I found it useful to revisit the company’s performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether J. Boutaris & Son Holding’s performance has been impacted by industry movements. In this article I briefly touch on my key findings. See our latest analysis for J. Boutaris & Son Holding
Despite a decline, did MPK underperform the long-term trend and the industry?
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend allows me to assess different stocks on a similar basis, using the most relevant data points. For J. Boutaris & Son Holding, its most recent bottom-line (trailing twelve month) is -€1.95M, which, against last year’s figure, has become more negative. Given that these values are relatively myopic, I’ve calculated an annualized five-year figure for J. Boutaris & Son Holding’s earnings, which stands at -€2.73M. This shows that, although net income is negative, it has become less negative over the years.We can further analyze J. Boutaris & Son Holding’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years J. Boutaris & Son Holding has seen an annual decline in revenue of -4.53%, 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 GR beverage industry has been growing its average earnings by double-digit 17.28% in the previous twelve months, and a more muted 3.25% over the past half a decade. This means any tailwind the industry is enjoying, J. Boutaris & Son Holding has not been able to realize the gains unlike its industry peers.
What does this mean?
J. Boutaris & Son Holding’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will occur going forward, and when. The most useful step is to examine company-specific issues J. Boutaris & Son Holding may be facing and whether management guidance has consistently been met in the past. You should continue to research J. Boutaris & Son Holding to get a better picture of the stock by looking at:
- 1. Financial Health: Is MPK’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.