Yahoo Finance Want To Invest In Acerinox SA. (BME:ACX)? Here’s How It Performed Lately
When Acerinox SA. (BME:ACX) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Acerinox’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not ACX actually performed well. Below is a quick commentary on how I see ACX has performed. See our latest analysis for Acerinox
Commentary On ACX’s Past Performance
I use 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 blend allows me to analyze different stocks on a more comparable basis, using the latest information. For Acerinox, its latest trailing-twelve-month earnings is €194.10M, which, relative to the prior year’s level, has grown by a somewhat soft 4.03%. Given that these values are somewhat myopic, I’ve determined an annualized five-year figure for Acerinox’s earnings, which stands at €77.66M This means that, generally, Acerinox has been able to steadily raise its profits over the past couple of years as well.
What’s enabled this growth? Let’s see if it is solely due to industry tailwinds, or if Acerinox has experienced some company-specific growth. Over the past few years, Acerinox expanded bottom-line, while its top-line fell, by efficiently controlling its costs. This brought about to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the ES metals and mining industry has been growing its average earnings by double-digit 20.20% over the previous twelve months, . This is a turnaround from a volatile drop of -8.96% in the last few years. This means that, in the recent industry expansion, Acerinox has not been able to gain as much as its average peer.
What does this mean?
Acerinox’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Acerinox has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Acerinox to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for ACX’s future growth? Take a look at our free research report of analyst consensus for ACX’s outlook.
Financial Health: Is ACX’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 March 2018. 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.
