Analyzing Yangtze River Port and Logistics Limited’s (NASDAQ:YRIV) 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 YRIV’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 Yangtze River Port and Logistics
How Did YRIV’s Recent Performance Stack Up Against Its Past?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, 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 blend enables me to examine different stocks on a similar basis, using new information. For Yangtze River Port and Logistics, its latest earnings (trailing twelve month) is -US$12.71M, which compared to the previous year’s figure, has become more negative. Given that these values may be fairly myopic, I’ve determined an annualized five-year figure for YRIV’s earnings, which stands at -US$9.47M. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.We can further examine Yangtze River Port and Logistics’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Yangtze River Port and Logistics has seen an annual decline in revenue of -73.65%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the US infrastructure industry has been growing its average earnings by double-digit 15.14% in the previous twelve months, and a less exciting 9.00% over the previous five years. This means that whatever uplift the industry is benefiting from, Yangtze River Port and Logistics 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 predict what will occur going forward, and when. The most insightful step is to assess company-specific issues Yangtze River Port and Logistics may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Yangtze River Port and Logistics to get a more holistic view of the stock by looking at:
- Financial Health: Is YRIV’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.