- United States
- /
- Software
- /
- NYSE:BTCM
Does 500com Limited's (NYSE:WBAI) Past Performance Indicate A Weaker Future?
After looking at 500com Limited's (NYSE:WBAI) latest earnings update (31 March 2018), I found it helpful to revisit the company's performance in the past couple of years and compare this against the latest numbers. 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 an important aspect. In this article I briefly touch on my key findings. Check out our latest analysis for 500.com
Was WBAI weak performance lately part of a long-term decline?
I prefer to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to analyze different companies on a more comparable basis, using the latest information. For 500.com, its most recent bottom-line (trailing twelve month) is -CN¥321.40M, which, relative to the prior year's level, has become more negative. Given that these figures are relatively nearsighted, I have calculated an annualized five-year figure for 500.com's net income, which stands at -CN¥97.81M. This doesn't look much better, since earnings seem to have gradually been getting more and more negative over time.
What does this mean?
Though 500.com's past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to forecast what will happen in the future and when. The most useful step is to examine company-specific issues 500.com may be facing and whether management guidance has dependably been met in the past. You should continue to research 500.com to get a more holistic view of the stock by looking at:
- Financial Health: Is WBAI’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.
Valuation is complex, but we're here to simplify it.
Discover if BIT Mining might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave 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 NYSE:BTCM
BIT Mining
Operates as a cryptocurrency mining company in the Mainland China, the United States, and Hong Kong.
Moderate with adequate balance sheet.
Similar Companies
Market Insights
Community Narratives
