Assessing Cenveo Inc’s (NASDAQ:CVO) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how Cenveo is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its commercial services and supplies industry peers. View our latest analysis for Cenveo
Did CVO 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 latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique allows me to assess various companies in a uniform manner using new information. Cenveo’s most recent twelve-month earnings -$23M, which, against the prior year’s figure, has turned from positive to negative. Given that these values are somewhat nearsighted, I’ve computed an annualized five-year value for CVO’s earnings, which stands at -$53M. This means that, while net income is negative, it has become less negative over the years.
Additionally, we can analyze Cenveo’s loss by researching what’s going on in the industry on top of within the company. Initially, I want to briefly look into the line items. Revenue growth over last few years has been relatively muted, remaining flat on average at -1.51%. Since top-line growth is also pretty stale the key to profitability in the future would be managing costs. Eyeballing growth from a sector-level, the US commercial services and supplies industry has been growing its average earnings by double-digit 14.09% over the prior twelve months, and a more muted 8.10% over the past five years. This means any uplift the industry is enjoying, Cenveo has not been able to gain as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues Cenveo may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Cenveo to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for CVO’s future growth? Take a look at our free research report of analyst consensus for CVO’s outlook.
2. Financial Health: Is CVO’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.
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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.