In this article, I will take a look at Commercial Engineers & Body Builders Co Limited’s (NSEI:CEBBCO) most recent earnings update (30 September 2017) and compare these latest figures against its performance over the past few years, along with how the rest of CEBBCO’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. View our latest analysis for Commercial Engineers & Body Builders Co
Were CEBBCO’s earnings stronger than its past performances and the industry?
For the most up-to-date info, 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 examine different companies on a more comparable basis, using the most relevant data points. For Commercial Engineers & Body Builders Co, its most recent twelve-month earnings is -₹348.4M, which compared to last year’s level, has become less negative. Since these figures are relatively nearsighted, I’ve computed an annualized five-year value for CEBBCO’s earnings, which stands at -₹393.7M. This suggests that, although net income is negative, it has become less negative over the years.
We can further examine Commercial Engineers & Body Builders Co’s loss by looking at what’s going on in the industry as well as within the company. First, I want to briefly look into the line items. Revenue growth over the past few years has been negative at -26.66%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Looking at growth from a sector-level, the IN machinery industry has been growing its average earnings by double-digit 14.32% over the past twelve months, and a flatter -0.50% over the past five years. This shows that, even though Commercial Engineers & Body Builders Co is presently loss-making, it may have only just benefited from the recent industry expansion, moving earnings into a more favorable position.
What does this mean?
Commercial Engineers & Body Builders Co’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to predict what will occur going forward, and when. The most valuable step is to examine company-specific issues Commercial Engineers & Body Builders Co may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Commercial Engineers & Body Builders Co to get a better picture of the stock by looking at: