Measuring Uranium Energy Corp’s (AMEX:UEC) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess UEC’s recent performance announced on 31 January 2018 and weigh these figures against its long-term trend and industry movements. View our latest analysis for Uranium Energy
How Well Did UEC Perform?
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 allows me to examine different stocks in a uniform manner using new information. For Uranium Energy, its latest trailing-twelve-month earnings is -US$18.30M, which, in comparison to the prior year’s level, has become more negative. Given that these figures may be fairly short-term, I have calculated an annualized five-year figure for Uranium Energy’s net income, which stands at -US$22.37M. This means while net income is negative, it has become less negative over the years.
We can further assess Uranium Energy’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Uranium Energy has seen an annual decline in revenue of -22.25%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the US oil and gas industry has been growing its average earnings by double-digit 24.90% in the previous year, . This is a turnaround from a volatile drop of -8.32% in the past few years. This means that any uplift the industry is enjoying, Uranium Energy has not been able to gain as much as its average peer.
What does this mean?
Uranium Energy’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to forecast what will occur going forward, and when. The most useful step is to examine company-specific issues Uranium Energy may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Uranium Energy to get a better picture of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for UEC’s future growth? Take a look at our free research report of analyst consensus for UEC’s outlook.
- 2. Financial Health: Is UEC’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 31 January 2018. 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.