Stock Analysis

Open Joint Stock Company Quadra - Power Generation (MCX:TGKD): Has Recent Earnings Growth Beaten Long-Term Trend?

MISX:TGKD
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After reading Open Joint Stock Company Quadra - Power Generation's (MISX:TGKD) most recent earnings announcement (30 June 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways. See our latest analysis for Quadra - Power Generation

Commentary On TGKD's Past Performance

For the most up-to-date info, I use data from the most recent 12 months, 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 enables me to assess different stocks on a more comparable basis, using the latest information. For Quadra - Power Generation, its most recent earnings (trailing twelve month) is -RUРУБ1.54B, which, relative to the previous year's level, has become less negative. Since these figures are somewhat myopic, I’ve determined an annualized five-year value for Quadra - Power Generation's earnings, which stands at -RUРУБ2.34B. This shows that, while net income is negative, it has become less negative over the years.

MISX:TGKD Income Statement Mar 9th 18
MISX:TGKD Income Statement Mar 9th 18
We can further evaluate Quadra - Power Generation's loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Quadra - Power Generation's top-line has grown by a mere 3.88%, on average. The company's inability to breakeven has been aided by the relatively flat top-line in the past. Inspecting growth from a sector-level, the RU electric utilities industry has been enduring some headwinds over the previous year, leading to average earnings dropping by more than half. This is a a strong change, given that the industry has been delivering a relatively flat growth rate over the past few years. This means that despite the fact that Quadra - Power Generation is presently unprofitable, any near-term headwind the industry is enduring, Quadra - Power Generation is less exposed compared to its peers.

What does this mean?

Though Quadra - Power Generation's past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to forecast what will happen in the future and when. The most useful step is to examine company-specific issues Quadra - Power Generation may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Quadra - Power Generation to get a better picture of the stock by looking at:

  • 1. Financial Health: Is TGKD’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.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2017. This may not be consistent with full year annual report figures.

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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 MISX:TGKD

Quadra - Power Generation

Public Joint Stock Company "Quadra - Power Generation", together with its subsidiaries, generates and sells electricity and thermal energy in Russia.

Mediocre balance sheet with weak fundamentals.

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