Understanding how Yatra Online Inc (NASDAQ:YTRA) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Yatra Online is doing by comparing its latest earnings with its long-term trend as well as the performance of its online retail industry peers. View our latest analysis for Yatra Online
Did YTRA beat its long-term earnings growth trend and its industry?
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 blend allows me to analyze different companies in a uniform manner using new information. For Yatra Online, its latest trailing-twelve-month earnings is -₹4.44B, which, relative to the prior year’s figure, has become less negative. Since these figures may be somewhat short-term thinking, I’ve computed an annualized five-year figure for Yatra Online’s earnings, which stands at -₹4.26B. This means that, Yatra Online has historically performed better than recently, although it seems like earnings are now heading back towards a more favorable position once more.
We can further assess Yatra Online’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Yatra Online’s top-line has grown by 17.21% on average, implying that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Looking at growth from a sector-level, the US online retail industry has been growing its average earnings by double-digit 44.43% over the past year, and 15.51% over the previous five years. This shows that any uplift the industry is profiting from, Yatra Online has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to forecast what will happen in the future and when. The most insightful step is to examine company-specific issues Yatra Online may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research Yatra Online to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for YTRA’s future growth? Take a look at our free research report of analyst consensus for YTRA’s outlook.
- 2. Financial Health: Is YTRA’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 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.