Moxian Inc (NASDAQ:MOXC): Has Recent Earnings Growth Beaten Long-Term Trend?
Analyzing Moxian Inc’s (NASDAQ:MOXC) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess MOXC’s recent performance announced on 31 December 2017 and compare these figures to its long-term trend and industry movements. See our latest analysis for Moxian
How Did MOXC’s Recent Performance Stack Up Against Its Past?
For the most up-to-date info, 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 technique enables me to assess many different companies on a more comparable basis, using the most relevant data points. For Moxian, its most recent bottom-line (trailing twelve month) is -US$12.77M, which compared to the prior year’s figure, has become less negative. Given that these values may be somewhat myopic, I’ve determined an annualized five-year figure for Moxian’s net income, which stands at -US$5.93M. This shows that, Moxian has historically performed better than recently, though it seems like earnings are now heading back towards to right direction again.
We can further evaluate Moxian’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Moxian’s revenue growth has been relatively unexciting, with an annual growth rate of -0.082%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 14.78% over the past twelve months, and 16.95% over the past half a decade. This means whatever tailwind the industry is benefiting from, Moxian has not been able to realize the gains unlike its average peer.
What does this mean?
Though Moxian’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most useful step is to examine company-specific issues Moxian may be facing and whether management guidance has consistently been met in the past. You should continue to research Moxian to get a better picture of the stock by looking at:
1. Financial Health: Is MOXC’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 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.
