Understanding Global Invacom Group Limited’s (SGX:QS9) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Global Invacom Group is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period. Check out our latest analysis for Global Invacom Group
Commentary On QS9’s Past Performance
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 Global Invacom Group, its most recent earnings is -$0.8M, which, against last year’s figure, has turned from positive to negative. Since these values are relatively myopic, I’ve estimated an annualized five-year value for QS9’s earnings, which stands at -$1.1M. This means despite the fact that net income is negative, it has become less negative over the years.
Additionally, we can evaluate Global Invacom Group’s loss by researching what has been happening in the industry as well as within the company. Firstly, I want to briefly look into the line items. Revenue growth over the past few years has grown by a mere 9.35%. Given that top-line growth is also pretty flat, the key to profitability in the future would be controlling costs. Scanning growth from a sector-level, the SG communications equipment industry has been growing, albeit, at a unexciting single-digit rate of 3.48% over the prior year, and a substantial 16.98% over the past five. This means that any recent headwind the industry is enduring, it’s hitting Global Invacom Group harder than its peers.
What does this mean?
Global Invacom Group’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always hard to predict what will happen in the future and when. The most useful step is to examine company-specific issues Global Invacom Group may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Global Invacom Group to get a more holistic view of the stock by looking at:
1. Financial Health: Is QS9’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.