Examining Inpixon’s (NASDAQ:INPX) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess INPX’s latest performance announced on 30 September 2017 and weight these figures against its longer term trend and industry movements. View our latest analysis for Inpixon
Was INPX weak performance lately part of a long-term decline?
I like to use the ‘latest twelve-month’ data, 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 different stocks on a more comparable basis, using the most relevant data points. For Inpixon, its latest earnings (trailing twelve month) is -$40.3M, which, in comparison to last year’s level, has become more negative. Since these figures are somewhat short-term thinking, I’ve determined an annualized five-year value for Inpixon’s earnings, which stands at -$11.8M. This doesn’t seem to paint a better picture, since earnings seem to have consistently been getting more and more negative over time.
Additionally, we can analyze Inpixon’s loss by researching what has been happening in the industry as well as within the company. First, I want to briefly look into the line items. Revenue growth over the last couple of years has grown by 17.94%, indicating that Inpixon is in a high-growth phase with expenses shooting ahead of high top-line growth rates, leading to yearly losses. Inspecting growth from a sector-level, the US it industry has been growing, albeit, at a unexciting single-digit rate of 2.96% over the past year, and 9.97% over the previous few years. This means that whatever near-term headwind the industry is facing, it’s hitting Inpixon harder than its peers.
What does this mean?
Inpixon’s track record can be a valuable insight into its earnings performance, but it certainly 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 Inpixon may be facing and whether management guidance has consistently been met in the past. You should continue to research Inpixon to get a more holistic view of the stock by looking at:
1. Financial Health: Is INPX’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. Valuation: What is INPX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether INPX is currently mispriced by the market.
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 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.