Yahoo Finance Interested In CreativeForge Games SA (WSE:CFG)? Here’s How It Performed Recently
Today I will examine CreativeForge Games SA’s (WSE:CFG) latest earnings update (31 March 2018) and compare these figures against its performance over the past couple of years, in addition to how the rest of CFG’s industry performed. As a long-term investor, I find it useful to analyze the company’s trend over time in order to estimate whether or not the company is able to meet its goals, and eventually grow sustainably over time. See our latest analysis for CreativeForge Games
Did CFG beat its long-term earnings growth trend and its industry?
I prefer to use data from the most recent 12 months, 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 technique allows me to assess different stocks in a uniform manner using the most relevant data points. For CreativeForge Games, its most recent trailing-twelve-month earnings is -ZŁ674.36K, which compared to last year’s figure, has become less negative. Given that these figures may be somewhat short-term, I’ve computed an annualized five-year figure for CreativeForge Games’s earnings, which stands at -ZŁ1.16M. This suggests that, though net income is negative, it has become less negative over the years.
We can further assess CreativeForge Games’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade CreativeForge Games has seen an annual decline in revenue of -81.03%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Looking at growth from a sector-level, the PL software industry has been growing, albeit, at a unexciting single-digit rate of 5.20% over the prior twelve months, and a substantial 21.58% over the past five. This suggests that, even though CreativeForge Games is currently running a loss, it may have been aided by industry tailwinds, moving earnings into a more favorable position.
What does this mean?
Though CreativeForge Games’s past data is helpful, it is only one aspect of my investment thesis. 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 assess company-specific issues CreativeForge Games may be facing and whether management guidance has regularly been met in the past. You should continue to research CreativeForge Games to get a more holistic view of the stock by looking at:
Financial Health: Is CFG’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.
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 March 2018. 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.
