When Cantabil Retail India Limited (NSEI:CANTABIL) released its most recent earnings update (30 September 2017), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Understanding how Cantabil Retail India performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see CANTABIL has performed. Check out our latest analysis for Cantabil Retail India
Did CANTABIL’s recent earnings growth beat the long-term trend and the industry?
For the most up-to-date info, I 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 analyze various companies on a similar basis, using new information. “For Cantabil Retail India, its “, latest twelve-month earnings is ₹50.5M, which, relative to the prior year’s level, has increased by 14.59%. Given that these figures are fairly short-term, I have determined an annualized five-year value for CANTABIL’s net income, which stands at -₹66.1M. This means that, generally, Cantabil Retail India has been able to increasingly improve its net income over the past few years as well.
How has it been able to do this? Let’s take a look at whether it is merely a result of industry tailwinds, or if Cantabil Retail India has experienced some company-specific growth. Over the past few years, Cantabil Retail India expanded bottom-line, while its top-line declined, by effectively controlling its costs. This resulted in to a margin expansion and profitability over time. Looking at growth from a sector-level, the IN luxury industry has been growing, albeit, at a unexciting single-digit rate of 3.81% in the past twelve months, and 5.76% over the past five years. This means that any near-term headwind the industry is experiencing, Cantabil Retail India is relatively better-cushioned than its peers.
What does this mean?
Cantabil Retail India’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Cantabil Retail India gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Cantabil Retail India to get a better picture of the stock by looking at:
1. Financial Health: Is CANTABIL’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.