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 MYOS RENS Technology Inc (NASDAQ:MYOS) useful as an attempt to give more color around how MYOS RENS Technology is currently performing. View our latest analysis for MYOS RENS Technology
How MYOS fared against its long-term earnings performance and its industry
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This enables me to analyze different stocks in a uniform manner using the latest information. For MYOS RENS Technology, its latest trailing-twelve-month earnings is -US$4.06M, which, against the prior year’s figure, has become less negative. Given that these values may be relatively myopic, I have created an annualized five-year value for MYOS RENS Technology’s net income, which stands at -US$4.43M. This suggests that, while net income is negative, it has become less negative over the years.
We can further examine MYOS RENS Technology’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years MYOS RENS Technology has seen an annual decline in revenue of -10.10%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the US personal products industry has been growing its average earnings by double-digit 16.02% in the previous twelve months, and 10.20% over the past half a decade. This shows that any tailwind the industry is enjoying, MYOS RENS Technology has not been able to gain as much as its industry peers.
What does this mean?
Though MYOS RENS Technology’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to forecast what will happen in the future and when. The most insightful step is to assess company-specific issues MYOS RENS Technology may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research MYOS RENS Technology to get a better picture of the stock by looking at:
- 1. Financial Health: Is MYOS’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.