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 SBI Life Insurance Company Limited’s (NSEI:SBILIFE) 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 SBI Life Insurance
How Well Did SBILIFE Perform?
I look at the ‘latest twelve-month’ data, 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 technique allows me to assess different stocks in a uniform manner using new information. For SBI Life Insurance, its latest trailing-twelve-month earnings is ₹11.36B, which, in comparison to the previous year’s level, has taken a dive by a large -71.34%. Given that these figures are relatively short-term, I’ve created an annualized five-year figure for SBI Life Insurance’s earnings, which stands at ₹7.28B This means while earnings declined against the prior year, over a longer period of time, SBI Life Insurance’s profits have been growing on average.How has it been able to do this? Well, let’s take a look at if it is only owing to industry tailwinds, or if SBI Life Insurance has seen some company-specific growth. In the last few years, SBI Life Insurance increased its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Scanning growth from a sector-level, the IN insurance industry has been growing its average earnings by double-digit 15.16% over the past twelve months, and a more subdued 7.98% over the past half a decade. This means whatever uplift the industry is profiting from, SBI Life Insurance has not been able to reap as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors impacting its business. I recommend you continue to research SBI Life Insurance to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for SBILIFE’s future growth? Take a look at our free research report of analyst consensus for SBILIFE’s outlook.
- 2. Financial Health: Is SBILIFE’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.