Measuring China Xiniya Fashion Limited’s (NYSE:XNY) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess XNY’s recent performance announced on 30 June 2017 and compare these figures to its historical trend and industry movements. Check out our latest analysis for China Xiniya Fashion
Could XNY beat the long-term trend and outperform its industry?
I look at 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 method allows me to analyze various companies on a more comparable basis, using new information. For China Xiniya Fashion, the latest earnings -CN¥5M, which, in comparison to the prior year’s figure, has become less negative. Since these values are somewhat myopic, I’ve estimated an annualized five-year value for China Xiniya Fashion’s earnings, which stands at CN¥78M.
Additionally, we can evaluate China Xiniya Fashion’s loss by researching what’s going on in the industry along with within the company. First, I want to quickly look into the line items. Revenue growth over last couple of years has been negative at -17.92%. The key to profitability here is to make sure the company’s cost growth is well-managed. Inspecting growth from a sector-level, the US textiles, apparel and luxury goods industry has been enduring some headwinds in the prior twelve months, leading to an average earnings drop of -6.06%. This is a significant change, given that the industry has constantly been delivering a a solid growth of 10.25% in the previous few years. This means that any recent headwind the industry is experiencing, China Xiniya Fashion is less exposed compared to its peers.
What does this mean?
China Xiniya Fashion’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 forecast what will occur going forward, and when. The most useful step is to examine company-specific issues China Xiniya Fashion may be facing and whether management guidance has dependably been met in the past. You should continue to research China Xiniya Fashion to get a more holistic view of the stock by looking at:
1. Financial Health: Is XNY’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.