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Assessing Imperium Group Global Holdings Limited’s (SEHK:776) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how Imperium Group Global Holdings is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its consumer durables industry peers. See our latest analysis for Imperium Group Global Holdings
Did 776’s recent earnings growth beat the long-term trend and the industry?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method allows me to assess many different companies in a uniform manner using the latest information. For Imperium Group Global Holdings, its most recent earnings (trailing twelve month) is -HK$9.11M, which, relative to the previous year’s figure, has become less negative. Given that these figures may be fairly nearsighted, I have estimated an annualized five-year value for 776’s net income, which stands at -HK$12.82M. This suggests that, despite the fact that net income is negative, it has become less negative over the years.
We can further evaluate Imperium Group Global Holdings’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Imperium Group Global Holdings has seen an annual decline in revenue of -9.63%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Viewing growth from a sector-level, the HK consumer durables industry has been growing its average earnings by double-digit 20.57% in the past year, and 12.42% over the past five. This means although Imperium Group Global Holdings is presently running a loss, it may have benefited from industry tailwinds, moving earnings into a more favorable position.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to envisage what will occur going forward, and when. The most useful step is to examine company-specific issues Imperium Group Global Holdings may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Imperium Group Global Holdings to get a more holistic view of the stock by looking at: