Examining Moa Group Limited’s (NZSE:MOA) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess MOA’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. See our latest analysis for Moa Group
Commentary On MOA’s Past Performance
I like to 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 allows me to analyze many different companies on a similar basis, using new information. For Moa Group, its latest earnings (trailing twelve month) is -NZ$2.51M, which, in comparison to the previous year’s figure, has become less negative. Since these values are somewhat nearsighted, I have determined an annualized five-year value for Moa Group’s earnings, which stands at -NZ$3.90M. This means that, despite the fact that net income is negative, it has become less negative over the years.
We can further evaluate Moa Group’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Moa Group’s top-line has grown by 21.37% on average, implying that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Looking at growth from a sector-level, the NZ beverage industry has been growing its average earnings by double-digit 19.44% over the past year, and a more muted 3.78% over the past half a decade. This means that any tailwind the industry is deriving benefit from, Moa Group has not been able to reap as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to predict what will happen in the future and when. The most useful step is to examine company-specific issues Moa Group may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Moa Group to get a better picture of the stock by looking at:
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Financial Health: Is MOA’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.
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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 30 September 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.