Analyzing Moneysupermarketcom Group PLC’s (LSE:MONY) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess MONY’s recent performance announced on 30 June 2017 and compare these figures to its long-term trend and industry movements. Check out our latest analysis for Moneysupermarket.com Group
Did MONY beat its long-term earnings growth trend and its industry?
I look at the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to analyze many different companies on a similar basis, using the latest information. Moneysupermarket.com Group’s most recent earnings is £75.9M, which, in comparison to last year’s level, has grown by a somewhat unexciting 6.69%. Given that these figures may be relatively nearsighted, I’ve determined an annualized five-year figure for MONY’s net income, which stands at £41.8M. This means that, on average, Moneysupermarket.com Group has been able to increasingly grow its profits over the past few years as well.
What’s enabled this growth? Let’s see whether it is only owing to an industry uplift, or if Moneysupermarket.com Group has experienced some company-specific growth. In the past couple of years, Moneysupermarket.com Group increased its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Viewing growth from a sector-level, the UK internet industry has been growing its average earnings by double-digit 14.72% over the previous twelve months, and 14.24% over the past couple of years. This means whatever uplift the industry is profiting from, Moneysupermarket.com Group has not been able to reap as much as its average peer.
What does this mean?
Moneysupermarket.com Group’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 Moneysupermarket.com Group to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MONY’s future growth? Take a look at our free research report of analyst consensus for MONY’s outlook.