Meridian Mining SE (TSXV:MNO): Should The Recent EPS Drop Worry You?
For investors with a long-term horizon, examining earnings trend over time and against industry peers is more insightful than looking at an earnings announcement in one point in time. Investors may find my commentary, albeit very high-level and brief, on Meridian Mining SE (TSXV:MNO) useful as an attempt to give more color around how Meridian Mining S.E is currently performing. View our latest analysis for Meridian Mining S.E
How Well Did MNO Perform?
To account for any quarterly or half-yearly updates, 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 allows me to examine different companies on a similar basis, using new information. Meridian Mining S.E’s most recent earnings -$14M, which, in comparison to the prior year’s level, has become more negative. Since these figures are somewhat nearsighted, I’ve determined an annualized five-year figure for Meridian Mining S.E’s earnings, which stands at -$11M. This doesn’t seem to paint a better picture, as earnings seem to have steadily been getting more and more negative over time.
Additionally, we can examine Meridian Mining S.E’s loss by looking at what has been happening in the industry as well as within the company. Initially, I want to quickly look into the line items. Revenue growth over last few years has grew by 98.31%, signalling that Meridian Mining S.E is in a high-growth period with expenses racing ahead high top-line growth rates. Viewing growth from a sector-level, the Canadian metals and mining industry has been growing average earnings growth of 60.80% in the previous year, and a robust 11.97% over the past couple of years. This shows that any tailwind the industry is enjoying, Meridian Mining S.E has not been able to gain as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues Meridian Mining S.E may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Meridian Mining S.E to get a more holistic view of the stock by looking at:
1. Financial Health: Is MNO’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. 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.
