Does Yangtze River Port and Logistics Limited’s (NASDAQ:YRIV) Past Performance Indicate A Weaker Future?
For investors with a long-term horizon, assessing earnings trend over time and against industry benchmarks is more valuable than looking at a single earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Yangtze River Port and Logistics Limited (NASDAQ:YRIV) useful as an attempt to give more color around how Yangtze River Port and Logistics is currently performing. View our latest analysis for Yangtze River Port and Logistics
Was YRIV’s recent earnings decline worse than the long-term trend and the industry?
I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to analyze various companies on a similar basis, using the latest information. For Yangtze River Port and Logistics, its latest trailing-twelve-month earnings is -US$12.71M, which compared to last year’s level, has become more negative. Since these values are relatively myopic, I have estimated an annualized five-year figure for Yangtze River Port and Logistics’s earnings, which stands at -US$9.47M. This doesn’t seem to paint a better picture, as earnings seem to have gradually been getting more and more negative over time.
We can further analyze Yangtze River Port and Logistics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Yangtze River Port and Logistics has seen an annual decline in revenue of -73.65%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Inspecting growth from a sector-level, the US infrastructure industry has been growing its average earnings by double-digit 14.42% over the past twelve months, and a more muted 8.78% over the past five years. This means that whatever uplift the industry is enjoying, Yangtze River Port and Logistics has not been able to reap 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 difficult to envisage what will happen in the future and when. The most valuable step is to examine company-specific issues Yangtze River Port and Logistics may be facing and whether management guidance has regularly been met in the past. You should continue to research Yangtze River Port and Logistics to get a better picture of the stock by looking at:
Financial Health: Is YRIV’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.
