Analyzing Sino-Global Shipping America Ltd’s (NASDAQ:SINO) track record of past performance is a valuable exercise for investors. It enables us to reflect on whether or not the company has met expectations, which is a powerful signal for future performance. Today I will assess SINO’s recent performance announced on 31 March 2018 and compare these figures to its long-term trend and industry movements. Check out our latest analysis for Sino-Global Shipping America
How Did SINO’s Recent Performance Stack Up Against Its Past?
For the most up-to-date info, I 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 method allows me to examine various companies in a uniform manner using new information. For Sino-Global Shipping America, its latest earnings (trailing twelve month) is US$1.79M, which, relative to the previous year’s level, has declined by a non-trivial -38.68%. Since these values are somewhat myopic, I have calculated an annualized five-year value for SINO’s net income, which stands at US$52.39K This shows that though earnings growth was negative against the prior year, over time, Sino-Global Shipping America’s profits have been growing on average.What’s enabled this growth? Let’s take a look at if it is only because of industry tailwinds, or if Sino-Global Shipping America has experienced some company-specific growth. Over the last few years, Sino-Global Shipping America grew bottom-line, while its top-line fell, by effectively managing its costs. This brought about to a margin expansion and profitability over time. Viewing growth from a sector-level, the US infrastructure industry has been growing its average earnings by double-digit 12.75% in the past year, and a more muted 8.78% over the previous five years. This shows that whatever uplift the industry is profiting from, Sino-Global Shipping America has not been able to gain as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have capricious earnings, can have many factors affecting its business. I suggest you continue to research Sino-Global Shipping America to get a more holistic view of the stock by looking at:
- Financial Health: Is SINO’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.
- 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.