Assessing Secure Trust Bank Plc’s (LSE:STB) 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 STB’s recent performance announced on 30 June 2017 and evaluate these figures to its long-term trend and industry movements. See our latest analysis for Secure Trust Bank
Commentary On STB’s Past Performance
For the most up-to-date info, 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 examine different stocks on a more comparable basis, using the most relevant data points. “For Secure Trust Bank, its “, most recent twelve-month earnings is £19.6M, which, relative to the prior year’s level, has declined by -7.55%. Given that these figures may be somewhat myopic, I’ve computed an annualized five-year figure for Secure Trust Bank’s earnings, which stands at £13.6M. This means though earnings declined from the prior year, in the long run, Secure Trust Bank’s profits have been growing on average.
What’s the driver of this growth? Well, let’s take a look at if it is merely because of an industry uplift, or if Secure Trust Bank has seen some company-specific growth. The ascend in earnings seems to be supported by a solid top-line increase outpacing its growth rate of expenses. Though this has led to a margin contraction, it has made Secure Trust Bank more profitable. Viewing growth from a sector-level, the UK banks industry has been growing its average earnings by double-digit 20.70% over the prior year, and 11.02% over the previous five years. This suggests that any uplift the industry is enjoying, Secure Trust Bank has not been able to reap as much as its industry peers.
What does this mean?
Though Secure Trust Bank’s past data is helpful, it is only one aspect of my investment thesis. Companies are profitable, but have unpredictable earnings, can have many factors impacting its business. You should continue to research Secure Trust Bank to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for STB’s future growth? Take a look at our free research report of analyst consensus for STB’s outlook.
2. Financial Health: Is STB’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.