Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at ENDRA Life Sciences Inc’s (NASDAQ:NDRA) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for ENDRA Life Sciences
Was NDRA weak performance lately part of a long-term decline?
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 technique allows me to analyze many different companies in a uniform manner using new information. For ENDRA Life Sciences, the most recent twelve-month earnings -$4M, which, against the previous year’s level, has become more negative. Given that these values may be relatively short-term, I have calculated an annualized five-year value for NDRA’s net income, which stands at -$3M. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.
We can further examine ENDRA Life Sciences’s loss by researching what’s going on in the industry on top of within the company. Firstly, I want to quickly look into the line items. Revenue growth over last couple of years has been negative at -12.01%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Scanning growth from a sector-level, the US healthcare equipment and supplies industry has been growing its average earnings by double-digit 15.51% in the prior twelve months, and a more muted 8.10% over the past five. This shows that whatever uplift the industry is enjoying, ENDRA Life Sciences has not been able to reap as much as its industry peers.
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 envisage what will happen in the future and when. The most useful step is to examine company-specific issues ENDRA Life Sciences may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research ENDRA Life Sciences to get a better picture of the stock by looking at:
1. Financial Health: Is NDRA’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 NDRA 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 NDRA 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 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.