Understanding how Quintegra Solutions Limited (NSEI:QUINTEGRA) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Quintegra Solutions is doing by comparing its latest earnings with its long-term trend as well as the performance of its it industry peers. Check out our latest analysis for Quintegra Solutions
How Did QUINTEGRA’s Recent Performance Stack Up Against Its Past?
For the purpose of this commentary, I like 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 technique enables me to examine various companies in a uniform manner using the most relevant data points. For Quintegra Solutions, its most recent bottom-line (trailing twelve month) is IN₨29.04M, which, in comparison to last year’s figure, has dropped by a non-trivial -39.99%. Given that these figures are relatively myopic, I’ve estimated an annualized five-year figure for Quintegra Solutions’s net income, which stands at -IN₨215.62M This shows that despite the fact that earnings growth was negative against the prior year, over the past couple of years, Quintegra Solutions’s earnings have been rising on average.What’s enabled this growth? Let’s see if it is solely attributable to industry tailwinds, or if Quintegra Solutions has experienced some company-specific growth. Over the past few years, Quintegra Solutions grew bottom-line, while its top-line fell, by successfully managing its costs. This brought about to a margin expansion and profitability over time. Looking at growth from a sector-level, the IN it industry has been growing, albeit, at a muted single-digit rate of 8.75% in the prior year, and a substantial 12.16% over the past five years. This suggests that any tailwind the industry is benefiting from, Quintegra Solutions has not been able to reap as much as its average peer.
What does this mean?
Quintegra Solutions’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies are profitable, but have capricious earnings, can have many factors impacting its business. I suggest you continue to research Quintegra Solutions to get a better picture of the stock by looking at:
- 1. Financial Health: Is QUINTEGRA’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. 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.