Measuring TrovaGene Inc’s (NASDAQ:TROV) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess TROV’s recent performance announced on 31 March 2018 and compare these figures to its historical trend and industry movements. See our latest analysis for TrovaGene
Did TROV beat its long-term earnings growth trend and its industry?
I look at 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 various companies on a more comparable basis, using new information. For TrovaGene, its most recent bottom-line (trailing twelve month) is -US$19.72M, which compared to the prior year’s figure, has become less negative. Given that these values may be somewhat short-term, I have determined an annualized five-year value for TrovaGene’s earnings, which stands at -US$18.83M. This shows that, TrovaGene has historically performed better than recently, though it seems like earnings are now heading back towards to right direction again.
We can further analyze TrovaGene’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years TrovaGene’s top-line has increased by a mere 2.91%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the US biotechs industry has been growing its average earnings by double-digit 21.75% in the previous twelve months, and 18.46% over the last five years. This means that, even though TrovaGene is presently unprofitable, it may have been aided by industry tailwinds, moving earnings into a more favorable position.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will happen in the future and when. The most insightful step is to assess company-specific issues TrovaGene may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research TrovaGene to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for TROV’s future growth? Take a look at our free research report of analyst consensus for TROV’s outlook.
- Financial Health: Is TROV’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.
- 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 March 2018. 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.