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Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Civeo Corporation’s (NYSE:CVEO) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. View our latest analysis for Civeo
Commentary On CVEO’s Past Performance
To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, 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 method enables me to examine various companies on a more comparable basis, using the latest information. For Civeo, its most recent bottom-line (trailing twelve month) is -US$105.71M, which, in comparison to last year’s figure, has become more negative. Given that these values may be fairly short-term, I’ve created an annualized five-year value for CVEO’s net income, which stands at -US$43.15M. This doesn’t look much better, since earnings seem to have gradually been getting more and more negative over time.
We can further examine Civeo’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Civeo has seen an annual decline in revenue of -22.06%, 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 US commercial services industry has been growing, albeit, at a muted single-digit rate of 7.15% in the previous twelve months, and a substantial 10.33% over the last five years. This means that whatever uplift the industry is profiting from, Civeo has not been able to leverage it as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most insightful step is to examine company-specific issues Civeo may be facing and whether management guidance has consistently been met in the past. You should continue to research Civeo 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 CVEO’s future growth? Take a look at our free research report of analyst consensus for CVEO’s outlook.
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2. Financial Health: Is CVEO’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 December 2017. 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.