Understanding BroadVision Inc’s (NASDAQ:BVSN) 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 BroadVision is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period. Check out our latest analysis for BroadVision
How Did BVSN’s Recent Performance Stack Up Against Its Past?
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 method enables me to assess different stocks in a uniform manner using the most relevant data points. For BroadVision, its latest earnings is -$9.9M, which, against the prior year’s level, has become less negative. Given that these values may be fairly short-term, I have estimated an annualized five-year figure for BVSN’s net income, which stands at -$7.2M. This shows that, BroadVision has historically performed better than recently, while it seems like earnings are now heading back in the right direction again.
We can further analyze BroadVision’s loss by researching what’s going on in the industry as well as within the company. First, I want to quickly look into the line items. Revenue growth over the past few years has been negative at -14.67%. The key to profitability here is to make sure the company’s cost growth is well-managed. Scanning growth from a sector-level, the US internet industry has been growing, albeit, at a unexciting single-digit rate of 7.42% over the previous twelve months, and a substantial 15.52% over the past couple of years. This suggests that any uplift the industry is deriving benefit from, BroadVision has not been able to realize the gains unlike its industry peers.
What does this mean?
BroadVision’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 forecast what will occur going forward, and when. The most insightful step is to assess company-specific issues BroadVision may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research BroadVision to get a better picture of the stock by looking at:
1. Financial Health: Is BVSN’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 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.