Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Gr Sarantis S.A.’s (ATSE:SAR) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Gr. Sarantis
How Did SAR’s Recent Performance Stack Up Against Its Past?
I like 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 examine different stocks in a uniform manner using new information. For Gr. Sarantis, its latest earnings (trailing twelve month) is €29.40M, which, in comparison to last year’s figure, has risen by 26.45%. Since these values may be somewhat nearsighted, I have created an annualized five-year figure for Gr. Sarantis’s earnings, which stands at €16.55M This shows that, on average, Gr. Sarantis has been able to steadily grow its net income over the last couple of years as well.What’s the driver of this growth? Let’s take a look at whether it is solely attributable to an industry uplift, or if Gr. Sarantis has experienced some company-specific growth. Over the last few years, Gr. Sarantis increased its bottom line faster than revenue by successfully controlling its costs. This brought about a margin expansion and profitability over time. Inspecting growth from a sector-level, the GR personal products industry has been growing, albeit, at a subdued single-digit rate of 9.57% in the past year, and 9.69% over the past five. This means that whatever uplift the industry is enjoying, Gr. Sarantis is capable of amplifying this to its advantage.
What does this mean?
Gr. Sarantis’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Gr. Sarantis has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Gr. Sarantis to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for SAR’s future growth? Take a look at our free research report of analyst consensus for SAR’s outlook.
- 2. Financial Health: Is SAR’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.