Has Nam Tai Property Inc.'s (NYSE:NTP) Earnings Momentum Changed Recently?

Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Nam Tai Property Inc.'s (NYSE:NTP) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers.

Check out our latest analysis for Nam Tai Property

Did NTP's recent performance beat its trend and industry?

NTP is loss-making, with the most recent trailing twelve-month earnings of -US$13.2m (from 31 December 2019), which compared to last year has become less negative. Furthermore, the company's loss seem to be growing over time, with the five-year earnings average of -US$4.8m. Each year, for the past five years NTP has seen an annual decline in revenue of -16%, on average. This adverse movement is a driver of the company's inability to reach breakeven.

Looking at growth from a sector-level, the US real estate industry has been growing, albeit, at a unexciting single-digit rate of 2.7% in the past twelve months, and 8.4% over the last five years. This growth is a median of profitable companies of 21 Real Estate companies in US including CKX Lands, RMR Group and Forestar Group. This means whatever recent headwind the industry is facing, it’s hitting Nam Tai Property harder than its peers.

Although Nam Tai Property is loss-making, it has an ample cash cushion (US$130m) to pay for its upcoming operating expenses over the next couple of years. This is a good sign of business sustainability going forward.

What does this mean?

Nam Tai Property's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that incur net loss is always difficult to predict what will happen in the future and when. The most useful step is to examine company-specific issues Nam Tai Property may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Nam Tai Property to get a more holistic view of the stock by looking at:

1. Financial Health: Are NTP’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. Valuation: What is NTP worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether NTP is currently mispriced by the market.
3. 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 trailing twelve months from 31 December 2019. This may not be consistent with full year annual report figures.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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