Examining Cesca Therapeutics Inc’s (NASDAQ:KOOL) 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 KOOL’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for Cesca Therapeutics
Commentary On KOOL’s Past Performance
For the purpose of this commentary, 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 allows me to assess many different companies on a similar basis, using the latest information. For Cesca Therapeutics, its most recent bottom-line (trailing twelve month) is -US$9.00M, which, in comparison to last year’s level, has become less negative. Given that these values may be fairly short-term, I have computed an annualized five-year figure for Cesca Therapeutics’s net income, which stands at -US$12.03M. This shows that, even though net income is negative, it has become less negative over the years.We can further evaluate Cesca Therapeutics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Cesca Therapeutics has seen an annual decline in revenue of -8.91%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Viewing growth from a sector-level, the US medical equipment industry has been growing its average earnings by double-digit 11.46% in the previous twelve months, and a more subdued 9.16% over the previous five years. This means that, despite the fact that Cesca Therapeutics is currently unprofitable, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most valuable step is to examine company-specific issues Cesca Therapeutics may be facing and whether management guidance has steadily been met in the past. You should continue to research Cesca Therapeutics 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 KOOL’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.