When SciBase Holding AB (publ) (OM:SCIB) released its most recent earnings update (31 March 2018), I compared it against two factor: its historical earnings track record, and the performance of its industry peers on average. Being able to interpret how well SciBase Holding has done so far requires weighing its performance against a benchmark, rather than looking at a standalone number at a point in time. In this article, I’ve summarized the key takeaways on how I see SCIB has performed. View out our latest analysis for SciBase Holding
How Did SCIB’s Recent Performance Stack Up Against Its Past?SCIB is loss-making, with the most recent trailing twelve-month earnings of -kr40.51m (from 31 March 2018), which compared to last year has become less negative. Furthermore, the company’s loss seem to be growing over time, with the five-year earnings average of -kr46.62m. Each year, for the past five years SCIB has seen an annual increase in operating expense growth, outpacing revenue growth of 37.77%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Viewing growth from a sector-level, the SE medical equipment industry has been enduring some headwinds over the past twelve months, leading to an average earnings drop of -14.49%. This is a momentous change, given that the industry has constantly been delivering a a solid growth of 13.91% in the past five years. This means though SciBase Holding is presently loss-making, whatever recent headwind the industry is enduring, the impact on SciBase Holding has been softer relative to its peers.
Even though SciBase Holding is currently unprofitable, its has a good cash runway to meet its upcoming operating expense (should SG&A and one-year R&D remain constant at the current level of kr43.21m) over the next year. This is a sign of good cash management.
What does this mean?
SciBase Holding’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 difficult to predict what will happen in the future and when. The most insightful step is to examine company-specific issues SciBase Holding may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research SciBase Holding to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for SCIB’s future growth? Take a look at our free research report of analyst consensus for SCIB’s outlook.
- Financial Health: Is SCIB’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.
- 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.