Was Ynvisible Interactive Inc’s (CVE:YNV) Earnings Decline Part Of A Broader Industry Downturn?

Measuring Ynvisible Interactive Inc’s (TSXV:YNV) track record of past performance is a valuable exercise for investors. It allows 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 YNV’s recent performance announced on 30 September 2017 and compare these figures to its historical trend and industry movements. Check out our latest analysis for Ynvisible Interactive

Despite a decline, did YNV underperform the long-term trend and the industry?

I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This technique allows me to analyze various companies on a similar basis, using the latest information. For Ynvisible Interactive, its latest earnings (trailing twelve month) is -€322.65K, which, against the prior year’s level, has become more negative. Given that these values are relatively nearsighted, I’ve computed an annualized five-year figure for Ynvisible Interactive’s earnings, which stands at -€240.81K. This doesn’t seem to paint a better picture, as earnings seem to have steadily been getting more and more negative over time.

TSXV:YNV Income Statement Jun 5th 18
TSXV:YNV Income Statement Jun 5th 18
We can further analyze Ynvisible Interactive’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Ynvisible Interactive has seen an annual decline in revenue of -10.23%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Looking at growth from a sector-level, the Canadian electronic industry has been growing, albeit, at a unexciting single-digit rate of 3.76% over the past twelve months, and a substantial 12.78% over the last five years. This means any near-term headwind the industry is facing, it’s hitting Ynvisible Interactive harder than its peers.

What does this mean?

Ynvisible Interactive’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will happen in the future and when. The most useful step is to examine company-specific issues Ynvisible Interactive may be facing and whether management guidance has dependably been met in the past. You should continue to research Ynvisible Interactive to get a better picture of the stock by looking at:

  1. Financial Health: Is YNV’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 trailing twelve months from 30 September 2017. This may not be consistent with full year annual report figures.