Examining how China Mining International Limited (SGX:BHD) is performing as a company requires looking at more than just a years’ earnings. Below, I will run you through a simple sense check to build perspective on how China Mining International is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its metals and mining industry peers. See our latest analysis for China Mining International

How Well Did BHD Perform?

I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This technique enables me to examine different stocks in a uniform manner using the latest information. For China Mining International, its most recent trailing-twelve-month earnings is -CN¥16.01M, which, in comparison to the previous year’s figure, has become more negative. Since these values are somewhat short-term, I have computed an annualized five-year value for BHD’s net income, which stands at -CN¥83.45M. This suggests that, even though net income is negative, it has become less negative over the years.

We can further assess China Mining International’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years China Mining International has seen an annual decline in revenue of -37.41%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the SG metals and mining industry has been enduring some headwinds over the past couple of years, leading to an average earnings drop of -4.09% in the most recent year. This suggests that any recent the industry is enduring, it’s hitting China Mining International harder than its peers.

What does this mean?

While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to envisage what will happen in the future and when. The most insightful step is to examine company-specific issues China Mining International may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research China Mining International to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.