After looking at Fortis Healthcare Limited’s (NSE:FORTIS) latest earnings announcement (31 December 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 Fortis Healthcare’s performance has been impacted by industry movements. In this article I briefly touch on my key findings. Check out our latest analysis for Fortis Healthcare
Was FORTIS’s weak performance lately a part of a long-term decline?
FORTIS has recently become loss-making, with its trailing twelve-month earnings of -₹1.45b (from 31 December 2017) compared to its previous earnings of ₹163.66m. The speed at which its operating expenses is growing has exceeded top-line growth, pulling FORTIS into the loss-making zone.
Looking at growth from a sector-level, the IN healthcare industry has been growing, albeit, at a unexciting single-digit rate of 8.71% in the previous twelve months, and a substantial 18.78% over the last five years. This suggests that any tailwind the industry is enjoying, Fortis Healthcare has not been able to gain as much as its average peer.
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 steadily been met in the past. I recommend you continue to research Fortis Healthcare to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for FORTIS’s future growth? Take a look at our free research report of analyst consensus for FORTIS’s outlook.
- Financial Health: Is FORTIS’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.
- 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.