When Fortis Healthcare Limited (NSEI:FORTIS) announced its most recent earnings (31 December 2017), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Fortis Healthcare performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see FORTIS has performed. View our latest analysis for Fortis Healthcare
Did FORTIS perform worse than its track record and industry?
For the most up-to-date info, I 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 analyze various companies in a uniform manner using the latest information. For Fortis Healthcare, its most recent earnings (trailing twelve month) is -₹1.45B, which compared to the previous year’s level, has turned from positive to negative. Since these values are relatively myopic, I’ve determined an annualized five-year value for Fortis Healthcare’s earnings, which stands at ₹1.03B.We can further analyze Fortis Healthcare’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Fortis Healthcare’s top-line has grown by a mere 9.33%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Inspecting growth from a sector-level, the IN healthcare industry has been growing its average earnings by double-digit 21.42% in the prior year, and 19.22% over the past five. This means whatever uplift the industry is deriving benefit from, Fortis Healthcare has not been able to realize the gains unlike its industry peers.
What does this mean?
Fortis Healthcare’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 difficult to envisage what will happen in the future and when. The most useful step is to examine company-specific issues Fortis Healthcare may be facing and whether management guidance has dependably been met in the past. You should continue to research Fortis Healthcare to get a more holistic view of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
- 1. Future Outlook: What are well-informed industry analysts predicting for FORTIS’s future growth? Take a look at this free research report of analyst consensus for FORTIS’s outlook.
- 2. Financial Health: Is FORTIS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
- 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.