Interested In Pretium Resources Inc (TSE:PVG)? Here’s How It Performed Recently
When Pretium Resources Inc (TSX:PVG) announced its most recent earnings (31 December 2017), I did two things: looked at its past earnings track record, then look at what is happening in the industry. Understanding how Pretium Resources performed requires a benchmark rather than trying to assess a standalone number at one point in time. Below is a quick commentary on how I see PVG has performed. Check out our latest analysis for Pretium Resources
How Well Did PVG Perform?
I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This allows me to analyze different stocks in a uniform manner using the most relevant data points. For Pretium Resources, its most recent trailing-twelve-month earnings is -US$16.45M, which, in comparison to the previous year’s level, has become less negative. Since these figures may be somewhat nearsighted, I’ve determined an annualized five-year figure for Pretium Resources’s earnings, which stands at -US$24.89M. This means even though net income is negative, it has become less negative over the years.
We can further analyze Pretium Resources’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Pretium Resources’s top-line more than doubled on average, signalling that the business is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Scanning growth from a sector-level, the Canadian metals and mining industry has been growing its average earnings by double-digit 29.61% over the past twelve months, and 12.81% over the past half a decade. This means while Pretium Resources is presently unprofitable, it may have benefited from 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 hard to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues Pretium Resources may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Pretium Resources to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for PVG’s future growth? Take a look at our free research report of analyst consensus for PVG’s outlook.
Financial Health: Is PVG’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 December 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.
