Does Italian Wine Brands Sp.A.’s (BIT:IWB) Past Performance Indicate A Stronger Future?
Assessing Italian Wine Brands Sp.A.’s (BIT:IWB) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess IWB’s latest performance announced on 31 December 2017 and evaluate these figures to its historical trend and industry movements. Check out our latest analysis for Italian Wine Brands
How Did IWB’s Recent Performance Stack Up Against Its Past?
I like to use data from the most recent 12 months, 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 enables me to examine many different companies in a uniform manner using the latest information. For Italian Wine Brands, its latest trailing-twelve-month earnings is €6.73M, which, against last year’s figure, has risen by a significant 55.14%. Since these values may be somewhat myopic, I’ve computed an annualized five-year figure for Italian Wine Brands’s earnings, which stands at €5.09M This shows that, generally, Italian Wine Brands has been able to consistently raise its bottom line over the past few years as well.
What’s the driver of this growth? Well, let’s take a look at if it is merely owing to an industry uplift, or if Italian Wine Brands has experienced some company-specific growth. In the last couple of years, Italian Wine Brands grew its bottom line faster than revenue by successfully controlling its costs. This resulted in a margin expansion and profitability over time. Inspecting growth from a sector-level, the IT beverage industry has been growing its average earnings by double-digit 18.58% over the prior twelve months, and a less exciting 4.18% over the past five years. This means any uplift the industry is profiting from, Italian Wine Brands is capable of leveraging this to its advantage.
What does this mean?
While past data is useful, it 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 recommend you continue to research Italian Wine Brands to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for IWB’s future growth? Take a look at our free research report of analyst consensus for IWB’s outlook.
Financial Health: Is IWB’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.
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.
