Yahoo Finance How Does IVE Group Limited’s (ASX:IGL) Earnings Growth Stack Up Against Industry Performance?
Analyzing IVE Group Limited’s (ASX:IGL) 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 IGL’s recent performance announced on 31 December 2017 and compare these figures to its long-term trend and industry movements. Check out our latest analysis for IVE Group
How Did IGL’s Recent Performance Stack Up Against Its Past?
I like to use the ‘latest twelve-month’ data, 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 analyze different stocks on a similar basis, using new information. For IVE Group, its most recent trailing-twelve-month earnings is AU$24.58M, which, relative to the prior year’s level, has increased by 27.11%. Since these values may be fairly myopic, I’ve estimated an annualized five-year figure for IGL’s earnings, which stands at AU$13.88M This suggests that, on average, IVE Group has been able to gradually improve its bottom line over the past couple of years as well.
What’s enabled this growth? Let’s see if it is merely due to industry tailwinds, or if IVE Group has seen some company-specific growth. In the last few years, IVE Group top-line expansion has outstripped earnings and the growth rate of expenses. Though this brought about a margin contraction, it has moderated IVE Group’s earnings contraction. Scanning growth from a sector-level, the Australian media industry has been growing, albeit, at a unexciting single-digit rate of 4.27% in the prior year, and a substantial 14.21% over the last five years. This means any recent headwind the industry is experiencing, IVE Group is relatively better-cushioned than its peers.
What does this mean?
Though IVE Group’s past data is helpful, it is only one aspect of my investment thesis. Companies that have performed well in the past, such as IVE Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research IVE Group to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for IGL’s future growth? Take a look at our free research report of analyst consensus for IGL’s outlook.
Financial Health: Is IGL’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.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
