How Has Bioanalytical Systems Inc’s (NASDAQ:BASI) Earnings Fared Against The Long Term Trend
Understanding Bioanalytical Systems Inc’s (NASDAQ:BASI) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Bioanalytical Systems is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period.
View our latest analysis for Bioanalytical Systems
Have BASI’s earnings improved against past performances and the industry?
BASI recently turned a profit of US$235.0k (most recent trailing twelve-months) compared to its average loss of -US$1.6m over the past five years.
In the past few years, Bioanalytical Systems increased bottom-line, while its top-line declined, by successfully controlling its costs. This has led to to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the US life sciences industry has been growing its average earnings by double-digit 11.6% over the prior year, and 19.7% over the previous five years. This growth is a median of profitable companies of 25 Life Sciences companies in US including Waters, Agilent Technologies and Bruker. This shows that whatever tailwind the industry is enjoying, Bioanalytical Systems has not been able to reap as much as its industry peers.
In terms of returns from investment, Bioanalytical Systems has fallen short of achieving a 20% return on equity (ROE), recording 2.7% instead. Furthermore, its return on assets (ROA) of 2.0% is below the US Life Sciences industry of 6.3%, indicating Bioanalytical Systems’s are utilized less efficiently. And finally, its return on capital (ROC), which also accounts for Bioanalytical Systems’s debt level, has declined over the past 3 years from 7.8% to 1.5%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. You should continue to research Bioanalytical Systems to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for BASI’s future growth? Take a look at our free research report of analyst consensus for BASI’s outlook.
Financial Health: Are BASI’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 30 June 2018. This may not be consistent with full year annual report figures.
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
