Understanding how Todays Writing Instruments Limited (NSEI:TODAYS) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Todays Writing Instruments is doing by comparing its latest earnings with its long-term trend as well as the performance of its commercial services industry peers. Check out our latest analysis for Todays Writing Instruments
Did TODAYS beat its long-term earnings growth trend and its industry?
I 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 technique allows me to analyze different companies on a similar basis, using the most relevant data points. For Todays Writing Instruments, its most recent twelve-month earnings is -₹80.0M, which compared to the prior year’s level, has become less negative. Since these figures are relatively nearsighted, I have computed an annualized five-year value for TODAYS’s net income, which stands at -₹307.3M. This means although net income is negative, it has become less negative over the years.
We can further analyze Todays Writing Instruments’s loss by researching what has been happening in the industry as well as within the company. First, I want to briefly look into the line items. Revenue growth over the last couple of years has been negative at -7.31%. The key to profitability here is to make sure the company’s cost growth is well-managed. Viewing growth from a sector-level, the IN commercial services industry has been enduring some headwinds over the previous twelve months, leading to an average earnings drop of -29.60%. This is a significant change, given that the industry has been delivering a positive rate of 9.30%, on average, over the previous few years. This means despite the fact that Todays Writing Instruments is presently running a loss, any near-term headwind the industry is enduring, the impact on Todays Writing Instruments has been softer relative to its peers.
What does this mean?
Todays Writing Instruments’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 happen in the future and when. The most insightful step is to assess company-specific issues Todays Writing Instruments may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Todays Writing Instruments to get a more holistic view of the stock by looking at: