Assessing Inpixon’s (NASDAQ:INPX) 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 INPX’s latest performance announced on 31 December 2017 and evaluate these figures to its historical trend and industry movements. View our latest analysis for Inpixon
Commentary On INPX’s Past Performance
I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method enables me to examine various companies in a uniform manner using the most relevant data points. For Inpixon, its most recent trailing-twelve-month earnings is -US$35.73M, which, relative to the prior year’s figure, has become more negative. Since these figures may be relatively short-term thinking, I’ve computed an annualized five-year figure for Inpixon’s net income, which stands at -US$12.87M. This doesn’t look much better, as earnings seem to have steadily been getting more and more negative over time.
We can further analyze Inpixon’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Inpixon’s top-line has increased by 15.40% on average, implying that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Eyeballing growth from a sector-level, the US it industry has been growing, albeit, at a subdued single-digit rate of 4.41% over the past twelve months, and a substantial 11.47% over the past five. This shows that whatever near-term headwind the industry is facing, it’s hitting Inpixon harder than its peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most valuable step is to examine company-specific issues Inpixon may be facing and whether management guidance has consistently been met in the past. You should continue to research Inpixon to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is INPX’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 INPX 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 INPX 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 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.