Interested In ISR Capital Limited (SGX:5EC)? Here's What Its Recent Performance Looks Like

For long-term investors, assessing earnings trend over time and against industry benchmarks is more beneficial than examining a single earnings announcement at a point in time. Investors may find my commentary, albeit very high-level and brief, on ISR Capital Limited (SGX:5EC) useful as an attempt to give more color around how ISR Capital is currently performing. See our latest analysis for ISR Capital

Commentary On 5EC's Past Performance

I like 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 enables me to assess different stocks on a more comparable basis, using new information. For ISR Capital, its most recent earnings (trailing twelve month) is -S$1.42M, which, against the prior year's level, has become less negative. Since these values are somewhat myopic, I have determined an annualized five-year value for ISR Capital's net income, which stands at -S$5.13M. This suggests that, despite the fact that net income is negative, it has become less negative over the years.

We can further examine ISR Capital's loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years ISR Capital has seen an annual decline in revenue of -9.96%, on average. This adverse movement is a driver of the company's inability to reach breakeven. Has the entire industry experienced this headwind? Inspecting growth from a sector-level, the SG capital markets industry has been growing, albeit, at a unexciting single-digit rate of 2.96% in the past year, . This is a change from a volatile drop of -2.77% in the previous few years. This shows that although ISR Capital is presently unprofitable, any recent headwind the industry is enduring, ISR Capital is relatively better-cushioned than its peers.

What does this mean?

Though ISR Capital's past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to forecast what will occur going forward, and when. The most useful step is to examine company-specific issues ISR Capital may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research ISR Capital to get a more holistic view of the stock by looking at the areas below. Just a heads up - to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.

• 1. Financial Health: Is 5EC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
• 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.

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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.