Measuring Imagi International Holdings Limited’s (SEHK:585) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess 585’s recent performance announced on 30 June 2017 and weigh these figures against its long-term trend and industry movements. See our latest analysis for Imagi International Holdings
How Well Did 585 Perform?
I use data from the most recent 12 months, 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 enables me to analyze different stocks on a more comparable basis, using the latest information. For Imagi International Holdings, its most recent trailing-twelve-month earnings is -HK$330.6M, which compared to last year’s figure, has become less negative. Since these figures may be somewhat short-term, I’ve calculated an annualized five-year value for 585’s earnings, which stands at -HK$164.9M. This means that, Imagi International Holdings has historically performed better than recently, despite the fact that it seems like earnings are now heading back in the right direction again.
We can further examine Imagi International Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Imagi International Holdings has seen an annual decline in revenue of -26.21%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Inspecting growth from a sector-level, the HK media industry has been relatively flat in terms of earnings growth . Thought this is a bit of a turnaround from a volatile drop of -15.73% in the last couple of years. This shows that despite the fact that Imagi International Holdings is currently loss-making, any recent headwind the industry is experiencing, Imagi International Holdings is relatively better-cushioned than its peers.
What does this mean?
Imagi International Holdings’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will happen in the future and when. The most useful step is to examine company-specific issues Imagi International Holdings may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Imagi International Holdings to get a better picture of the stock by looking at: