Yahoo Finance Interested In Goldcorp Inc (TSE:G)? Here’s What Its Recent Performance Looks Like
When Goldcorp Inc’s (TSX:G) announced its latest earnings (31 March 2018), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were Goldcorp’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not G actually performed well. Below is a quick commentary on how I see G has performed. View our latest analysis for Goldcorp
How Well Did G Perform?
I look at data from the most recent 12 months, 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 allows me to examine various companies in a uniform manner using new information. For Goldcorp, its latest trailing-twelve-month earnings is US$555.00M, which, against the previous year’s figure, has soared up by over 100%. Given that these values may be relatively nearsighted, I have created an annualized five-year value for Goldcorp’s earnings, which stands at -US$668.21M This shows that, on average, Goldcorp has been able to gradually raise its net income over the last few years as well.
What’s the driver of this growth? Well, let’s take a look at whether it is solely attributable to industry tailwinds, or if Goldcorp has seen some company-specific growth. Though both top-line and bottom-line growth rates in the past couple of years, were, on average, negative, earnings were more so. While this has caused a margin contraction, it has cushioned Goldcorp’s earnings contraction. Scanning growth from a sector-level, the Canadian metals and mining industry has been growing its average earnings by double-digit 26.57% over the previous year, and 10.86% over the previous five years. This suggests that whatever tailwind the industry is deriving benefit from, Goldcorp is capable of amplifying this to its advantage.
What does this mean?
Goldcorp’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that have performed well in the past, such as Goldcorp gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I recommend you continue to research Goldcorp to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for G’s future growth? Take a look at our free research report of analyst consensus for G’s outlook.
Financial Health: Is G’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 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.
