After reading Tintri Inc’s (NASDAQ:TNTR) latest earnings update (31 January 2018), I found it beneficial to look back at how the company has performed in the past and compare this against the most recent numbers. As a long-term investor I tend to pay attention to earnings trend, rather than a single number at one point in time. I also like to compare against an industry benchmark to understand whether TNTR has outperformed, or whether it is simply riding an industry wave. Below is a brief commentary on my key takeaways. See our latest analysis for Tintri
Commentary On TNTR’s Past Performance
For the most up-to-date info, 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 blend allows me to assess different stocks on a similar basis, using new information. For Tintri, its most recent earnings (trailing twelve month) is -US$137.91M, which, relative to the previous year’s level, has become more negative. Since these values are fairly nearsighted, I have calculated an annualized five-year value for Tintri’s net income, which stands at -US$99.54M. This doesn’t look much better, as earnings seem to have gradually been getting more and more negative over time.
We can further evaluate Tintri’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Tintri’s top-line has increased by 29.70% on average, indicating that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Inspecting growth from a sector-level, the US internet industry has been growing its average earnings by double-digit 14.78% in the past year, and 16.35% over the previous five years. This means whatever uplift the industry is benefiting from, Tintri has not been able to leverage it as much as its industry peers.
What does this mean?
Though Tintri’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to predict what will occur going forward, and when. The most valuable step is to examine company-specific issues Tintri may be facing and whether management guidance has steadily been met in the past. You should continue to research Tintri to get a better picture of the stock by looking at:
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1. Future Outlook: What are well-informed industry analysts predicting for TNTR’s future growth? Take a look at our free research report of analyst consensus for TNTR’s outlook.
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2. Financial Health: Is TNTR’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.
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3. 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.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 January 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.