Assessing Boston Omaha Corporation’s (NASDAQ:BOMN) 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 BOMN’s latest performance announced on 30 September 2017 and evaluate these figures to its historical trend and industry movements. See our latest analysis for Boston Omaha
Did BOMN perform worse than its track record and 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 allows me to analyze various companies in a uniform manner using the most relevant data points. For Boston Omaha, its most recent trailing-twelve-month earnings is -US$4.89M, which, in comparison to the previous year’s level, has become more negative. Given that these figures may be relatively myopic, I’ve estimated an annualized five-year figure for Boston Omaha’s net income, which stands at -US$953.45K. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.
We can further analyze Boston Omaha’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Boston Omaha’s top-line has increased by 95.13% on average, implying that the company is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses. Eyeballing growth from a sector-level, the US media industry has been growing its average earnings by double-digit 18.92% over the previous twelve months, and a less exciting 7.56% over the last five years. This suggests that whatever uplift the industry is benefiting from, Boston Omaha has not been able to leverage it as much as its industry peers.
What does this mean?
Boston Omaha’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always hard to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues Boston Omaha may be facing and whether management guidance has steadily been met in the past. You should continue to research Boston Omaha to get a better picture of the stock by looking at:
- 1. Financial Health: Is BOMN’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. 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 September 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.