Investors with a long-term horizong may find it valuable to assess ENDRA Life Sciences Inc’s (NASDAQ:NDRA) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. Below is my commentary, albiet very simple and high-level, on how ENDRA Life Sciences is currently performing. Check out our latest analysis for ENDRA Life Sciences
How Well Did NDRA Perform?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique allows me to examine different companies on a similar basis, using the most relevant data points. For ENDRA Life Sciences, its most recent trailing-twelve-month earnings is -US$5.38M, which, against the prior year’s level, has become more negative. Since these values may be relatively myopic, I have calculated an annualized five-year value for ENDRA Life Sciences’s net income, which stands at -US$3.03M. This doesn’t look much better, as earnings seem to have consistently been getting more and more negative over time.We can further assess ENDRA Life Sciences’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years ENDRA Life Sciences has seen an annual decline in revenue of -18.39%, 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 10.69% in the previous year, and 10.37% over the last five years. This means whatever uplift the industry is profiting from, ENDRA Life Sciences has not been able to leverage it as much as its average peer.
What does this mean?
Though ENDRA Life Sciences’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 occur going forward, and when. The most useful step is to assess company-specific issues ENDRA Life Sciences may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research ENDRA Life Sciences to get a better picture of the stock by looking at:
- 1. Financial Health: Is NDRA’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.
- 2. 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.