NasdaqGS:OTLY
NasdaqGS:OTLYFood

Oatly (OTLY) Losses Rise 10.5% Annually, Undermining Value Narrative Despite Low Price/Sales Ratio

Oatly Group (OTLY) remains unprofitable, with annual losses having worsened at a rate of 10.5% over the past five years. The company’s net profit margin has shown no improvement, and analysts predict Oatly will stay in the red for at least three more years. Despite a price-to-sales ratio of 0.6x that undercuts industry peers, sentiment is tempered by ongoing losses and revenue growth forecast at just 4.4% per year, well below the broader US market’s expected 10.3%. See our full analysis for...
NasdaqGS:BBIO
NasdaqGS:BBIOBiotechs

BridgeBio Pharma (BBIO): Negative Equity Underscores Balance Sheet Risk Despite Forecasted Profit Growth

BridgeBio Pharma (BBIO) remains unprofitable, with net losses having grown at an annual rate of 7.3% over the past five years. While the company’s net profit margins have yet to improve, forecasts point to rapid earnings growth ahead as analysts expect earnings to jump 73.17% per year and see BridgeBio turning profitable within three years. Revenue is also projected to accelerate by 42.8% per year, far outpacing the 10.3% growth rate forecast for the broader US market. See our full analysis...
NasdaqGS:CNXN
NasdaqGS:CNXNElectronic

PC Connection (CNXN) Profit Margins Narrow, Challenging Bullish Narrative on Near-Term Earnings Recovery

PC Connection (CNXN) posted net profit margins of 2.9%, down from last year's 3.2%, with earnings declining over the past year despite averaging 7.7% annual growth across the previous five years. Looking forward, analysts project annual earnings growth of 12.4% and revenue growth of 4.8%, both trailing broader US market forecasts. With shares trading below some valuation metrics and risk assessments showing no material concerns, investors are turning their attention to whether expected...
NYSE:BIO
NYSE:BIOLife Sciences

Bio-Rad Laboratories (BIO): Losses Widen 51% Annually, Undervalued Status Reinforces Turnaround Narrative

Bio-Rad Laboratories (BIO) posted another period of unprofitability, with net losses accelerating at a rate of 51% per year over the past five years. The company is expected to turn profitable within three years as earnings are forecast to grow at a robust 42.12% annually. The price-to-sales ratio stands at 3.2x, which is lower than both the industry and peer averages. An estimated fair value above the current share price of $304.61 may attract investors looking for turnaround potential in...
NYSE:GTLS
NYSE:GTLSMachinery

Chart Industries (GTLS) Margin Contraction and $271M Loss Challenge Bullish Growth Narratives

Chart Industries (GTLS) posted a current net profit margin of 1%, down from 4% the previous year. Results were affected by a one-off loss of $271.4 million, which impacted overall earnings quality. While revenue is expected to grow 8.1% per year, a bit slower than the US market, analysts are projecting a standout 47.1% annual growth in earnings, outpacing the broader market's 15.7% forecast. Investors will be weighing the strong earnings outlook and attractive valuation compared to peers...
NasdaqGS:AMKR
NasdaqGS:AMKRSemiconductor

Amkor Technology (AMKR): Profit Margin Drops to 4.8%, Challenging Bullish Growth Narratives

Amkor Technology (AMKR) posted a net profit margin of 4.8%, down from 5.7% a year ago, highlighting a period of compressed profitability. Over the past five years, earnings fell by an average of 8.1% per year, but analysts now expect annual earnings growth of 21.75% for the next three years, well ahead of the US market's expected 15.7% growth rate. These strong forecasts have kept sentiment positive despite a slower 7.6% revenue growth outlook, as the market focuses on profit expansion and...
NYSE:UNH
NYSE:UNHHealthcare

UnitedHealth (UNH) Margin Growth Challenges Bearish Narratives on Profitability

UnitedHealth Group (UNH) posted a 22.9% annual earnings growth, well above its five-year CAGR of 2.6%, and boosted net profit margins to 4% from last year's 3.6%. Looking ahead, the company’s earnings are forecast to rise 8.3% per year and revenue by 4.3% per year, both trailing broader US market growth rates. Investors will note these margin improvements as a bright spot, but will also weigh them against the slightly slower projected future growth. See our full analysis for UnitedHealth...
NasdaqGS:MGPI
NasdaqGS:MGPIBeverage

MGP Ingredients (MGPI): Dividend Sustainability Questioned as Losses Persist and Revenue Faces Decline

MGP Ingredients (MGPI) remains unprofitable, with net losses rising at an annual rate of 9.1% over the past five years and revenue forecast to decline 2.6% per year for the next three years. Even so, earnings are projected to jump 85.22% per year, with profitability expected within three years and the stock currently trading at $24.19, significantly below an estimated fair value of $32.21. As investors weigh these results, the focus will likely fall on MGPI's path to profitability and the...
NYSE:MGY
NYSE:MGYOil and Gas

Magnolia Oil & Gas (MGY): Margin Compression Counters Bullish Narratives Despite Solid Long-Term Profitability

Magnolia Oil & Gas (MGY) is forecast to grow earnings by 8.2% per year, while revenue is expected to increase at an annual rate of 5.3%. The company’s current profit margin stands at 25.6%, down from 28.5% last year. Over the past five years, Magnolia has transitioned to profitability with annual earnings growth of 30.5%. Investors are likely taking note, as the stock trades at $22.41 per share, a Price-to-Earnings ratio of 12.3x, and high earnings quality even though recent earnings growth...
NYSE:BXMT
NYSE:BXMTMortgage REITs

Blackstone Mortgage Trust (BXMT) Returns to Profitability, Testing Market’s Patience With Premium Valuation

Blackstone Mortgage Trust (NYSE:BXMT) posted an earnings turnaround, with EPS now in positive territory after previously falling by 38.5% per year over the past five years. Annual earnings are forecast to jump 40.7% for the next three years, while revenue growth is set at 4.9% per year, trailing the broader US market’s 10.3% pace. Investors will be weighing this return to profitability and robust growth expectations against high valuation multiples and ongoing concerns about financial...
NYSE:VTR
NYSE:VTRHealth Care REITs

Ventas (VTR) One-Off $75M Loss Clouds Profit Turnaround, Fuels Valuation Scrutiny

Ventas (VTR) delivered a notable turning point as the company became profitable, following several years of declines. Looking ahead, earnings are forecast to grow 24.24% per year, outpacing both the US market’s anticipated 15.7% annual earnings growth and Ventas’s own projected revenue growth of 11.1%, which also sits above the national average of 10.3%. A single, non-recurring $75.0 million loss weighed on results for the past twelve months, making year-over-year comparisons tricky for...
NYSE:SCI
NYSE:SCIConsumer Services

SCI’s $324 Million One-Off Gain Challenges Earnings Quality Narrative for Service Corporation International

Service Corporation International (SCI) reported net profit margins of 12.5%, edging up from 12.2% a year ago, with earnings growth of 5.7% for the year outpacing its longer-term five-year average decline of 6.1% per year. The most recent results were boosted by a one-off gain of $323.9 million, and shares now trade at $83.77, which is below an estimated fair value of $102.51. As investors weigh projected earnings growth of 7.9% per year and attractive dividend characteristics against a few...
NYSE:AXS
NYSE:AXSInsurance

AXIS Capital (AXS) Profit Margin Jumps to 15.6%, Reinforcing Bullish Value Narratives

AXIS Capital Holdings (AXS) reported a robust net profit margin of 15.6%, up from 10.3% in the prior year, with earnings surging 59.7% and easily topping its 5-year average growth of 35.4% per year. While revenue is forecast to increase 5.9% annually and the Price-To-Earnings Ratio remains well below industry and peer group averages at 7.4x, future earnings growth is expected to moderate to 4.47% per year, slower than the broader US market's 15.7% pace. Investors are likely to see the...
NasdaqGS:CCB
NasdaqGS:CCBBanks

Coastal Financial (CCB) Margin Decline Fuels Debate Over Valuation Versus Growth Narrative

Coastal Financial (CCB) posted a 16.8% increase in earnings this quarter, with net profit margins at 13.9% compared to last year’s 14.9%. Shares currently trade at $104.42, which is below both discounted cash flow fair value and analyst price targets. Looking ahead, forecasts for 46.5% annual earnings growth and 31.8% revenue growth set the stage for a robust outlook. Investors must weigh these prospects against a premium P/E valuation. See our full analysis for Coastal Financial. Next up,...
NYSE:MAX
NYSE:MAXInteractive Media and Services

MediaAlpha (MAX) Narrows Losses, Valuation Discount Highlights Investor Debate Heading Into Profitability Pivot

MediaAlpha (MAX) remains unprofitable, having not yet achieved positive net profit margins, but the company has made progress by reducing its losses at a rate of 6.4% a year over the past five years. Analysts estimate revenue will grow at 7.4% annually, a pace slower than the US market average of 10.3% per year, while earnings are projected to surge at a robust 96.53% per year. The path to profitability appears within reach over the next three years. With four reward signals including strong...
NasdaqGS:AVT
NasdaqGS:AVTElectronic

Avnet (AVT) Margin Miss Raises Questions About Quality of Earnings Despite Growth Narrative

Avnet (AVT) posted forecast annual earnings growth of 40% per year, dramatically outpacing the broader US market’s 15.7% growth expectation. However, revenue for Avnet is anticipated to expand at just 5.1% per year, trailing the US average of 10.3%. Net profit margin slipped to 1% from 1.5% a year ago, with the latest twelve months reflecting a substantial one-off loss of $89.9 million. Despite these headwinds, Avnet's valuation looks compelling when measured against peers, as the stock...
NYSE:PAG
NYSE:PAGSpecialty Retail

Penske (PAG) Profit Margin Expands to 3.1%, Reinforcing Bullish Valuation Narratives

Penske Automotive Group (PAG) reported annual earnings growth of 8.1%, outpacing its five-year average of 2.3% per year, and saw its net profit margin improve from 2.9% to 3.1%. Revenue is projected to grow at 3.8% per year, lagging behind the broader US market’s rate of 10.3%. With shares trading below an estimated fair value of $169.20 and a Price-To-Earnings ratio of 11.4x compared to the industry average of 16.6x, investors are likely to see a mix of solid earnings quality and improving...