Does Newgen Software Technologies Limited's (NSE:NEWGEN) 96.97% Earnings Growth Make It An Outperformer?
When Newgen Software Technologies Limited (NSEI:NEWGEN) announced its most recent earnings (31 March 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well Newgen Software Technologies has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I've summarized the key takeaways on how I see NEWGEN has performed. Check out our latest analysis for Newgen Software Technologies
Were NEWGEN's earnings stronger than its past performances and the industry?
I prefer to use 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 allows me to examine various companies on a similar basis, using the latest information. For Newgen Software Technologies, its most recent bottom-line (trailing twelve month) is ₹511.1M, which, relative to last year’s figure, has increased by a substantial 96.97%. Since these figures may be fairly nearsighted, I have created an annualized five-year value for Newgen Software Technologies's earnings, which stands at ₹397.7M. This shows that, generally, Newgen Software Technologies has been able to steadily grow its profits over the past few years as well.
What does this mean?
Newgen Software Technologies's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While Newgen Software Technologies 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 Newgen Software Technologies to get a better picture of the stock by looking at:
- 1. Financial Health: Is NEWGEN’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.
- 2. Valuation: What is NEWGEN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NEWGEN is currently mispriced by the market.
- 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.
Valuation is complex, but we're here to simplify it.
Discover if Newgen Software Technologies might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About NSEI:NEWGEN
Newgen Software Technologies
A software company, engages in the business of software product development in India, Europe, the Middle East, Africa, the Asia Pacific, Australia, and the United States.
Flawless balance sheet with solid track record.
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