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For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Sacyr SA. (BME:SCYR) useful as an attempt to give more color around how Sacyr is currently performing. See our latest analysis for Sacyr
Commentary On SCYR’s Past Performance
I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend allows me to assess many different companies on a similar basis, using the latest information. For Sacyr, its most recent earnings (trailing twelve month) is €130.64M, which compared to last year’s figure, has risen by a somewhat subdued 8.65%. Since these figures are somewhat myopic, I’ve determined an annualized five-year figure for Sacyr’s earnings, which stands at -€503.63M This suggests that, generally, Sacyr has been able to consistently grow its bottom line over the last few years as well.
What’s the driver of this growth? Well, let’s take a look at if it is merely attributable to an industry uplift, or if Sacyr has seen some company-specific growth. Over the last few years, Sacyr grew bottom-line, while its top-line declined, by efficiently controlling its costs. This resulted in to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the ES construction industry has been growing its average earnings by double-digit 11.42% in the previous year, . This is a change from a volatile drop of -6.46% in the previous few years. This means that, in the recent industry expansion, Sacyr has not been able to realize the gains unlike its industry peers.
What does this mean?
Sacyr’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. 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 Sacyr to get a more holistic view of the stock by looking at:
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Future Outlook: What are well-informed industry analysts predicting for SCYR’s future growth? Take a look at our free research report of analyst consensus for SCYR’s outlook.
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Financial Health: Is SCYR’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 31 December 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.