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YPB Group Limited (ASX:YPB): Does The -69.11% Earnings Decline Make It An Underperformer?
After looking at YPB Group Limited's (ASX:YPB) latest earnings announcement (30 June 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. As a long-term investor I tend to focus on earnings trend, rather than a single number at one point in time. Also, comparing it against an industry benchmark to understand whether it outperformed, or is simply riding an industry wave, is a crucial aspect. Below is a brief commentary on my key takeaways. View our latest analysis for YPB Group
Was YPB weak performance lately part of a long-term decline?
For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method allows me to assess many different companies on a more comparable basis, using the most relevant data points. For YPB Group, its most recent bottom-line (trailing twelve month) is -AU$17.95M, which, against the prior year's level, has become more negative. Given that these values are relatively short-term, I’ve calculated an annualized five-year figure for YPB Group's earnings, which stands at -AU$11.39M. This doesn't look much better, as earnings seem to have consistently been getting more and more negative over time.
What does this mean?
YPB Group'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 hard to envisage what will occur going forward, and when. The most useful step is to assess company-specific issues YPB Group may be facing and whether management guidance has regularly been met in the past. You should continue to research YPB Group to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is YPB’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.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About ASX:CDE
Codeifai
Develops, markets, and sells anti-counterfeiting, product authentication, and consumer engagement solutions in Australia, the People’s Republic of China, Thailand, and the United States of America.
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