Examining Siem Offshore Inc’s (OB:SIOFF) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess SIOFF’s latest performance announced on 31 December 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for Siem Offshore
Was SIOFF weak performance lately part of a long-term decline?
I prefer to use the ‘latest twelve-month’ data, 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 method allows me to assess various companies in a uniform manner using the latest information. For Siem Offshore, its most recent earnings (trailing twelve month) is -US$145.32M, which, relative to the prior year’s figure, has become more negative. Given that these values may be fairly nearsighted, I have estimated an annualized five-year figure for Siem Offshore’s earnings, which stands at -US$46.73M. This doesn’t look much better, as earnings seem to have consistently been getting more and more negative over time.We can further evaluate Siem Offshore’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Siem Offshore’s top-line has risen by a mere 5.91%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Eyeballing growth from a sector-level, the NO energy services industry has been increasing growth, more than doubling average earnings in the previous twelve months, . This is a a solid turnaround from a volatile drop of -7.92% in the past couple of years. This means that whatever tailwind the industry is profiting from, Siem Offshore has not been able to gain as much as its industry peers.
What does this mean?
Though Siem Offshore’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to forecast what will happen in the future and when. The most insightful step is to assess company-specific issues Siem Offshore may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Siem Offshore to get a more holistic view of the stock by looking at:
- 1. Future Outlook: What are well-informed industry analysts predicting for SIOFF’s future growth? Take a look at our free research report of analyst consensus for SIOFF’s outlook.
- 2. Financial Health: Is SIOFF’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.
- 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.