Want To Invest In 49 North Resources Inc (TSXV:FNR)? Here’s How It Performed Lately
When 49 North Resources Inc’s (TSXV:FNR) announced its latest earnings (30 June 2017), I wanted to understand how these figures stacked up against its past performance. The two benchmarks I used were 49 North Resources’s average earnings over the past couple of years, and its industry performance. These are useful yardsticks to help me gauge whether or not FNR actually performed well. Below is a quick commentary on how I see FNR has performed. See our latest analysis for FNR
Could FNR beat the long-term trend and outperform its industry?
I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique enables me to assess many different companies on a similar basis, using the latest information. For 49 North Resources, the latest twelve-month earnings is CA$7M, which, in comparison to the prior year’s figure, has risen by 22.80%. Since these figures are somewhat short-term, I have computed an annualized five-year value for 49 North Resources’s net income, which stands at -CA$8M. This shows that, generally, 49 North Resources has been able to increasingly grow its bottom line over the last couple of years as well.
What’s enabled this growth? Let’s see if it is merely due to an industry uplift, or if 49 North Resources has seen some company-specific growth. Over the last few years, 49 North Resources expanded bottom-line, while its top-line declined, by successfully controlling its costs. This brought about to a margin expansion and profitability over time. Eyeballing growth from a sector-level, the Canadian capital markets industry has been relatively flat in terms of earnings growth over the previous couple of years. This means whatever near-term headwind the industry is facing, 49 North Resources is relatively better-cushioned than its peers.
What does this mean?
49 North Resources’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While 49 North Resources has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research 49 North Resources to get a more holistic view of the stock by looking at:
1. Financial Health: Is FNR’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. Valuation: What is FNR 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 FNR is currently mispriced by the market.
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 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.
