Where Fortis Healthcare Limited’s (NSE:FORTIS) Earnings Growth Stands Against Its Industry

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.

NSEI:FORTIS Income Statement June 17th 18
NSEI:FORTIS Income Statement June 17th 18

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:

  1. 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.
  2. 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.
  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.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.