Analyzing Eko Export SA.’s (WSE:EEX) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess EEX’s recent performance announced on 30 September 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for Eko Export
How Did EEX’s Recent Performance Stack Up Against Its Past?
I look at the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This enables me to assess different stocks in a uniform manner using the latest information. For Eko Export, its latest earnings (trailing twelve month) is -ZŁ1.73M, which, against the previous year’s level, has become more negative. Since these values may be relatively short-term thinking, I have estimated an annualized five-year figure for Eko Export’s net income, which stands at ZŁ5.27M.We can further analyze Eko Export’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Eko Export’s revenue growth has been somewhat unexciting, with an annual growth rate of 0.19%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Viewing growth from a sector-level, the PL chemicals industry has been enduring some headwinds in the previous twelve months, leading to an average earnings drop of -15.15%. This is a significant change, given that the industry has constantly been delivering a a notable growth of 10.74% in the past five years. This means that any recent headwind the industry is enduring, it’s hitting Eko Export harder than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most useful step is to examine company-specific issues Eko Export may be facing and whether management guidance has consistently been met in the past. You should continue to research Eko Export to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is EEX’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.