With A -9.7% Earnings Drop, Did ANI Integrated Services Limited (NSE:AISL) Really Underperform?
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In this commentary, I will examine ANI Integrated Services Limited's (NSE:AISL) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the professional services industry performed. As an investor, I find it beneficial to assess AISL’s trend over the short-to-medium term in order to gauge whether or not the company is able to meet its goals, and ultimately sustainably grow over time.
View our latest analysis for ANI Integrated Services
Despite a decline, did AISL underperform the long-term trend and the industry?
AISL's trailing twelve-month earnings (from 31 March 2019) of ₹52m has declined by -9.7% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 31%, indicating the rate at which AISL is growing has slowed down. What could be happening here? Let's examine what's going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, ANI Integrated Services has fallen short of achieving a 20% return on equity (ROE), recording 14% instead. However, its return on assets (ROA) of 11% exceeds the IN Professional Services industry of 7.4%, indicating ANI Integrated Services has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for ANI Integrated Services’s debt level, has declined over the past 3 years from 43% to 17%.
What does this mean?
ANI Integrated Services's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have unpredictable earnings, can have many factors influencing its business. I suggest you continue to research ANI Integrated Services to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for AISL’s future growth? Take a look at our free research report of analyst consensus for AISL’s outlook.
Financial Health: Are AISL’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 March 2019. This may not be consistent with full year annual report figures.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
