Yahoo Finance Where Senior plc (LON:SNR) Stands In Terms Of Earnings Growth Against Its Industry
Measuring Senior plc’s (LSE:SNR) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess SNR’s recent performance announced on 31 December 2017 and weigh these figures against its long-term trend and industry movements. See our latest analysis for Senior
Were SNR’s earnings stronger than its past performances and the industry?
I like to use data from the most recent 12 months, 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 method allows me to examine many different companies on a more comparable basis, using new information. For Senior, its most recent trailing-twelve-month earnings is UK£60.30M, which, in comparison to the prior year’s level, has risen by 32.82%. Since these values are somewhat nearsighted, I’ve calculated an annualized five-year value for Senior’s earnings, which stands at UK£56.87M This means generally, Senior has been able to increasingly grow its earnings over the past few years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is only attributable to an industry uplift, or if Senior has experienced some company-specific growth. Over the last few years, Senior top-line expansion has outpaced earnings and the growth rate of expenses. Though this brought about a margin contraction, it has softened Senior’s earnings contraction. Inspecting growth from a sector-level, the UK aerospace & defense industry has been growing its average earnings by double-digit 19.68% over the past year, . This is a change from a volatile drop of -4.01% in the past couple of years. This means in the recent industry expansion, Senior is capable of amplifying this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as Senior gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. You should continue to research Senior to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for SNR’s future growth? Take a look at our free research report of analyst consensus for SNR’s outlook.
Financial Health: Is SNR’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.
