Investors with a long-term horizong may find it valuable to assess Diebold Nixdorf Incorporated’s (NYSE:DBD) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how Diebold Nixdorf is currently performing. Check out our latest analysis for Diebold Nixdorf
Was DBD weak performance lately part of a long-term decline?
I look at 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 technique allows me to assess different companies in a uniform manner using the latest information. For Diebold Nixdorf, its most recent bottom-line (trailing twelve month) is -US$233.10M, which, relative to the prior year’s figure, has become more negative. Given that these figures are fairly short-term thinking, I’ve calculated an annualized five-year value for Diebold Nixdorf’s net income, which stands at -US$22.88M. This doesn’t look much better, as earnings seem to have steadily been getting more and more negative over time.We can further evaluate Diebold Nixdorf’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Diebold Nixdorf’s top-line has grown by a mere 4.82%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Looking at growth from a sector-level, the US tech industry has been growing, albeit, at a muted single-digit rate of 6.61% in the prior twelve months, and a substantial 13.32% over the last five years. This suggests that any uplift the industry is enjoying, Diebold Nixdorf has not been able to gain as much as its average peer.
What does this mean?
Diebold Nixdorf’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will occur going forward, and when. The most insightful step is to examine company-specific issues Diebold Nixdorf may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Diebold Nixdorf to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for DBD’s future growth? Take a look at our free research report of analyst consensus for DBD’s outlook.
- Financial Health: Is DBD’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.
- 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.