Examining COSCO Shipping International (Singapore) Co Ltd’s (SGX:F83) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess F83’s latest performance announced on 30 September 2017 and compare these figures to its longer term trend and industry movements. View our latest analysis for COSCO Shipping International (Singapore)
How Well Did F83 Perform?
I prefer to 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 technique allows me to analyze different stocks on a similar basis, using new information. COSCO Shipping International (Singapore)’s most recent earnings -SGD549.7M, which, against the prior year’s level, has become more negative. Since these values may be fairly short-term thinking, I have computed an annualized five-year value for COSCO Shipping International (Singapore)’s net income, which stands at -SGD79.0M. This doesn’t seem to paint a better picture, as earnings seem to have steadily been getting more and more negative over time.
Additionally, we can evaluate COSCO Shipping International (Singapore)’s loss by looking at what’s going on in the industry as well as within the company. Initially, I want to briefly look into the line items. Revenue growth over the last couple of years has been negative at -8.08%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Scanning growth from a sector-level, the SG machinery industry has been growing its average earnings by double-digit 45.72% in the previous year, and a flatter 0.69% over the previous five years. This shows that any tailwind the industry is enjoying, COSCO Shipping International (Singapore) 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 incur net loss is always difficult to predict what will occur going forward, and when. The most insightful step is to examine company-specific issues COSCO Shipping International (Singapore) may be facing and whether management guidance has steadily been met in the past. You should continue to research COSCO Shipping International (Singapore) to get a better picture of the stock by looking at:
1. Future Outlook: What are well-informed industry analysts predicting for F83’s future growth? Take a look at our free research report of analyst consensus for F83’s outlook.