Revitum SA.’s (WSE:REV) Earnings Dropped -102.26%, Did Its Industry Show Weakness Too?
Examining how Revitum SA. (WSE:REV) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how Revitum is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its healthcare industry peers. Check out our latest analysis for Revitum
Was REV’s recent earnings decline worse than the long-term trend and the industry?
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 allows me to analyze different stocks in a uniform manner using the most relevant data points. For Revitum, its latest trailing-twelve-month earnings is -ZŁ843.51K, which compared to the previous year’s level, has become more negative. Given that these figures may be fairly nearsighted, I’ve calculated an annualized five-year value for Revitum’s earnings, which stands at -ZŁ19.97K. This doesn’t look much better, since earnings seem to have steadily been getting more and more negative over time.
We can further evaluate Revitum’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Revitum’s revenue growth has been somewhat unexciting, with an annual growth rate of -0.80%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Eyeballing growth from a sector-level, the PL healthcare industry has been growing, albeit, at a unexciting single-digit rate of 9.97% over the prior year, and a substantial 22.54% over the past five years. This means any tailwind the industry is deriving benefit from, Revitum has not been able to realize the gains unlike its average peer.
What does this mean?
Revitum’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 happen in the future and when. The most insightful step is to assess company-specific issues Revitum may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Revitum to get a more holistic view of the stock by looking at:
Financial Health: Is REV’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.
Valuation: What is REV worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether REV is currently mispriced by the market.
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.
