Want To Invest In AC Spólka Akcyjna (WSE:ACG)? Here’s How It Performed Lately

Examining AC Spólka Akcyjna’s (WSE:ACG) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ACG’s latest performance announced on 31 March 2018 and weight these figures against its longer term trend and industry movements. See our latest analysis for AC Spólka Akcyjna

How Well Did ACG Perform?

I prefer 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 technique allows me to examine various companies on a more comparable basis, using the most relevant data points. For AC Spólka Akcyjna, its most recent earnings (trailing twelve month) is ZŁ32.14M, which, in comparison to the prior year’s figure, Since these values may be fairly short-term thinking, I’ve estimated an annualized five-year figure for ACG’s earnings, which stands at ZŁ27.05M This means generally, AC Spólka Akcyjna has been able to grow its earnings over the past couple of years.

What’s the driver of this growth? Let’s see whether it is merely owing to an industry uplift, or if AC Spólka Akcyjna has experienced some company-specific growth. In the last few years, AC Spólka Akcyjna grew its bottom line faster than revenue by efficiently controlling its costs. This resulted in a margin expansion and profitability over time. Eyeballing growth from a sector-level, the PL auto components industry has been growing its average earnings by double-digit 11.94% in the previous year, and 11.75% over the last five years. This suggests that whatever uplift the industry is profiting from, AC Spólka Akcyjna has not been able to gain as much as its industry peers.

What does this mean?

Though AC Spólka Akcyjna’s past data is helpful, it is only one aspect of my investment thesis. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research AC Spólka Akcyjna to get a better picture of the stock by looking at:

1. Financial Health: Is ACG’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.
2. Valuation: What is ACG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ACG is currently mispriced by the market.
3. 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 March 2018. 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.