Examining Yield10 Bioscience Inc’s (NASDAQ:YTEN) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess YTEN’s latest performance announced on 30 September 2017 and weight these figures against its longer term trend and industry movements. See our latest analysis for Yield10 Bioscience
How Well Did YTEN Perform?
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 allows me to analyze various companies on a more comparable basis, using the most relevant data points. For Yield10 Bioscience, its latest earnings is -$8.4M, which, relative to the previous year’s figure, has become less negative. Since these figures are relatively nearsighted, I have created an annualized five-year value for Yield10 Bioscience’s earnings, which stands at -$19.9M. This suggests that, while net income is negative, it has become less negative over the years.
Additionally, we can analyze Yield10 Bioscience’s loss by looking at what has been happening in the industry as well as within the company. Initially, I want to quickly look into the line items. Revenue growth over the past couple of years has been negative at -3.75%. The key to profitability here is to make sure the company’s cost growth is well-managed. Viewing growth from a sector-level, the US chemicals industry has been growing its average earnings by double-digit 14.21% in the previous twelve months, and a more subdued 5.47% over the past couple of years. This suggests that, despite the fact that Yield10 Bioscience is currently unprofitable, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to predict what will happen in the future and when. The most useful step is to examine company-specific issues Yield10 Bioscience may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Yield10 Bioscience to get a more holistic view of the stock by looking at:
1. Financial Health: Is YTEN’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 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.