Has EOS Russia's (STO:EOS) Earnings Momentum Changed Recently?

Examining EOS Russia's (OM:EOS) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess EOS's latest performance announced on 31 December 2017 and weight these figures against its longer term trend and industry movements. See our latest analysis for EOS Russia

How Well Did EOS Perform?

I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to examine various companies in a uniform manner using the latest information. For EOS Russia, its most recent earnings (trailing twelve month) is KR385.84M, which compared to last year’s level, Since these values are relatively nearsighted, I have created an annualized five-year figure for EOS Russia's net income, which stands at -KR313.55M This means on average, EOS Russia has been able to increase its earnings over the last couple of years.

What's the driver of this growth? Let's take a look at if it is only a result of an industry uplift, or if EOS Russia has experienced some company-specific growth. In the past couple of years, EOS Russia grew its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Looking at growth from a sector-level, the SE capital markets industry has been relatively flat in terms of earnings growth in the previous year, settling down from a robust 23.74% over the past half a decade. This shows that whatever recent headwind the industry is facing, EOS Russia is less exposed compared to its peers.

What does this mean?

Though EOS Russia's past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I recommend you continue to research EOS Russia to get a better picture of the stock by looking at:

• 1. Financial Health: Is EOS’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 EOS 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 EOS 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.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 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.