Interested In Everspin Technologies Inc (NASDAQ:MRAM)? Here’s What Its Recent Track-Record Looks Like
Examining Everspin Technologies Inc’s (NASDAQ:MRAM) 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 MRAM’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 Everspin Technologies
Was MRAM’s recent earnings decline worse than the long-term trend and the industry?
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, 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 different stocks on a similar basis, using new information. For Everspin Technologies, the most recent earnings -$22.0M, which, against last year’s figure, has become more negative. Given that these figures may be somewhat short-term, I have calculated an annualized five-year value for Everspin Technologies’s earnings, which stands at -$17.8M. This doesn’t seem to paint a better picture, since earnings seem to have gradually been getting more and more negative over time.
We can further assess Everspin Technologies’s loss by looking at 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 last few years has risen by a mere 9.26%. Given that top-line growth is also pretty stale the key to profitability in the future would be managing costs. Scanning growth from a sector-level, the US semiconductors and semiconductor equipment industry has been growing its average earnings by double-digit 16.48% in the previous twelve months, and a more muted 6.51% over the past five years. This means any tailwind the industry is profiting from, Everspin Technologies has not been able to gain as much as its industry peers.
What does this mean?
Though Everspin Technologies’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to forecast what will happen in the future and when. The most valuable step is to assess company-specific issues Everspin Technologies may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Everspin Technologies to get a more holistic view of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for MRAM’s future growth? Take a look at our free research report of analyst consensus for MRAM’s outlook.
2. Financial Health: Is MRAM’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.
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.
