Measuring Shinvest Holding Ltd’s (SGX:BJW) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess BJW’s recent performance announced on 28 February 2018 and compare these figures to its historical trend and industry movements. View our latest analysis for Shinvest Holding

Did BJW beat its long-term earnings growth trend and its industry?

I look at 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 blend allows me to examine many different companies on a similar basis, using the most relevant data points. For Shinvest Holding, its latest earnings (trailing twelve month) is -S$479.00K, which, in comparison to the prior year’s level, has become less negative. Since these figures are relatively nearsighted, I have computed an annualized five-year figure for BJW’s net income, which stands at -S$462.02K. This means Shinvest Holding has historically performed better than recently, even though it seems like earnings are now heading back towards a more favorable position once more.

We can further evaluate Shinvest Holding’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Shinvest Holding’s top-line has risen by a mere 8.08%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Looking at growth from a sector-level, the SG machinery industry has been enduring severe headwinds over the past year, leading to an average earnings drop of -35.65%. This is a significant change, given that the industry has constantly been delivering a a robust growth of 12.09% in the past five years. This means that though Shinvest Holding is presently loss-making, any near-term headwind the industry is facing, Shinvest Holding is relatively better-cushioned than its peers.

What does this mean?

Shinvest Holding’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 Shinvest Holding may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Shinvest Holding to get a better picture of the stock by looking at: