Does Electronics for Imaging Inc’s (NASDAQ:EFII) Past Performance Indicate A Weaker Future?

After reading Electronics for Imaging Inc’s (NASDAQ:EFII) most recent earnings announcement (31 December 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Electronics for Imaging’s performance has been impacted by industry movements. In this article I briefly touch on my key findings. View our latest analysis for Electronics for Imaging

Did EFII perform worse than its track record and industry?

I like 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 examine various companies on a similar basis, using the latest information. For Electronics for Imaging, its latest trailing-twelve-month earnings is -US$15.34M, which compared to last year’s level, has turned from positive to negative. Given that these values are relatively short-term, I’ve created an annualized five-year value for EFII’s net income, which stands at US$50.36M.

NasdaqGS:EFII Income Statement Apr 30th 18
NasdaqGS:EFII Income Statement Apr 30th 18
We can further assess Electronics for Imaging’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Electronics for Imaging’s top-line has risen by a mere 9.44%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Eyeballing growth from a sector-level, the US tech industry has been growing, albeit, at a unexciting single-digit rate of 6.61% in the previous year, and a substantial 15.19% over the previous five years. This shows that any uplift the industry is benefiting from, Electronics for Imaging has not been able to realize the gains unlike 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 hard to forecast what will occur going forward, and when. The most valuable step is to examine company-specific issues Electronics for Imaging may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Electronics for Imaging to get a better picture of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for EFII’s future growth? Take a look at our free research report of analyst consensus for EFII’s outlook.
  2. Financial Health: Is EFII’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.
  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 2017. This may not be consistent with full year annual report figures.