Assessing Powermatic Data Systems Limited’s (SGX:BCY) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how Powermatic Data Systems is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its communications equipment industry peers. Check out our latest analysis for Powermatic Data Systems
How Did BCY’s Recent Performance Stack Up Against Its Past?
I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to assess different stocks on a more comparable basis, using the latest information. “For Powermatic Data Systems, its “, most recent bottom-line is SGD4.4M, which compared to the previous year’s figure, has risen by 11.80%. Since these values may be fairly short-term, I’ve computed an annualized five-year figure for BCY’s net income, which stands at SGD2.4M. This means that, on average, Powermatic Data Systems has been able to increasingly improve its earnings over the past couple of years as well.
How has it been able to do this? Well, let’s take a look at if it is solely because of industry tailwinds, or if Powermatic Data Systems has experienced some company-specific growth. In the past few years, Powermatic Data Systems grew bottom-line, while its top-line fell, by successfully controlling its costs. This resulted in to a margin expansion and profitability over time. Inspecting growth from a sector-level, the SG communications equipment industry has been growing, albeit, at a unexciting single-digit rate of 3.48% in the past twelve months, and a substantial 16.98% over the past five years. This means any near-term headwind the industry is facing, the impact on Powermatic Data Systems has been softer relative to its peers.
What does this mean?
Though Powermatic Data Systems’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Powermatic Data Systems to get a more holistic view of the stock by looking at:
1. Financial Health: Is BCY’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.