For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Wifog Holding AB (publ)’s (OM:WIFOG) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers. View our latest analysis for Wifog Holding
Commentary On WIFOG’s Past Performance
For the most up-to-date info, I use the ‘latest twelve-month’ data, 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 assess various companies on a similar basis, using new information. For Wifog Holding, its most recent bottom-line (trailing twelve month) is -KR17.40M, which, relative to last year’s level, has become less negative. Since these values may be relatively myopic, I’ve created an annualized five-year value for WIFOG’s net income, which stands at -KR29.70M. This suggests that, although net income is negative, it has become less negative over the years.
We can further analyze Wifog Holding’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Wifog Holding’s top-line has risen by 18.41% on average, signalling that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Inspecting growth from a sector-level, the SE wireless telcom industry has been growing, albeit, at a subdued single-digit rate of 4.58% over the previous year, . This is a turnaround from a volatile drop of -2.95% in the past couple of years. This shows that while Wifog Holding is currently unprofitable, whatever recent headwind the industry is experiencing, Wifog Holding is less exposed compared to 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 hard to forecast what will happen in the future and when. The most useful step is to examine company-specific issues Wifog Holding may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Wifog Holding to get a more holistic view of the stock by looking at:
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1. Financial Health: Is WIFOG’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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2. 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.