Assessing Jaguar Health Inc’s (NASDAQ:JAGX) past track record of performance is a valuable exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess JAGX’s recent performance announced on 30 September 2017 and evaluate these figures to its longer term trend and industry movements. Check out our latest analysis for Jaguar Health
Could JAGX beat the long-term trend and outperform its industry?
I prefer to 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 method enables me to examine different companies in a uniform manner using new information. For Jaguar Health, its latest trailing-twelve-month earnings is -$11.1M, which, in comparison to the prior year’s level, has become less negative. Since these values are fairly short-term thinking, I have calculated an annualized five-year figure for JAGX’s net income, which stands at -$13.3M. This shows that, although net income is negative, it has become less negative over the years.
We can further examine Jaguar Health’s loss by researching what has been happening 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 increased by 93.99%, signalling that Jaguar Health is in a high-growth period with expenses shooting ahead of elevated top-line growth rates, leading to yearly losses. Viewing growth from a sector-level, the US pharmaceuticals industry has been growing, albeit, at a subdued single-digit rate of 6.66% in the prior twelve months, and a substantial 11.55% over the previous five years. This shows that, though Jaguar Health is currently loss-making, it may have been aided by industry tailwinds, moving earnings towards to right direction.
What does this mean?
Jaguar Health’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always hard to envisage what will occur going forward, and when. The most valuable step is to examine company-specific issues Jaguar Health may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Jaguar Health to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for JAGX’s future growth? Take a look at our free research report of analyst consensus for JAGX’s outlook.
2. Financial Health: Is JAGX’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 trailing twelve months from 30 September 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.