Assessing Atrion Corporation’s ( NASDAQ:ATRI ) 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 ATRI’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 Atrion
Did ATRI’s recent earnings growth beat the long-term trend and the industry?
For the most up-to-date info, I 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 method enables me to analyze different companies on a similar basis, using the latest information. For Atrion, its most recent bottom-line (trailing twelve month) is US$36.59M, which, in comparison to the previous year’s level, has increased by 32.68%. Given that these values are fairly short-term thinking, I’ve created an annualized five-year value for ATRI’s earnings, which stands at US$27.63M This shows that, generally, Atrion has been able to steadily grow its profits over the last couple of years as well.
What’s enabled this growth? Let’s take a look at whether it is solely owing to an industry uplift, or if Atrion has experienced some company-specific growth. Over the past few years, Atrion increased its bottom line faster than revenue by successfully controlling its costs. This has caused a margin expansion and profitability over time. Eyeballing growth from a sector-level, the US medical equipment industry has been growing, albeit, at a subdued single-digit rate of 8.46% over the previous twelve months, and 9.64% over the past half a decade. This shows that whatever uplift the industry is deriving benefit from, Atrion is able to leverage this to its advantage.
What does this mean?
Atrion’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Atrion has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I recommend you continue to research Atrion to get a more holistic view of the stock by looking at:
- Financial Health : Is ATRI’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 .
- Valuation : What is ATRI 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 ATRI is currently mispriced by the market.
- 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.