Examining how iBio Inc (AMEX:IBIO) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how iBio is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its biotechnology industry peers. See our latest analysis for iBio
Commentary On IBIO’s Past Performance
I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method allows me to examine various companies on a similar basis, using the most relevant data points. For iBio, the most recent bottom-line -$15.5M, which, relative to last year’s level, has become more negative. Given that these figures may be fairly myopic, I have estimated an annualized five-year figure for IBIO’s net income, which stands at -$8.2M. This doesn’t seem to paint a better picture, as earnings seem to have gradually been getting more and more negative over time.We can further evaluate iBio’s loss by researching what has been happening in the industry along with within the company. First, I want to quickly look into the line items. Revenue growth over the past couple of years has been relatively unexciting, remaining flat on average at -0.72%. Since top-line growth is also pretty flat, the key to profitability moving forward would be controlling costs. Viewing growth from a sector-level, the US biotechnology industry has been growing its average earnings by double-digit 11.07% in the past twelve months, and 20.18% over the previous few years. This shows that any uplift the industry is enjoying, iBio has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most insightful step is to examine company-specific issues iBio may be facing and whether management guidance has consistently been met in the past. You should continue to research iBio to get a more holistic view of the stock by looking at:
1. Financial Health: Is IBIO’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.NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.