Examining Art New Media Spólka Akcyjna’s (WSE:ANM) past track record of performance is a valuable exercise for investors. It enables us to understand whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess ANM’s latest performance announced on 30 September 2017 and weigh these figures against its longer term trend and industry movements. Check out our latest analysis for Art New Media Spólka Akcyjna
Did ANM’s recent earnings growth beat the long-term trend and the industry?
I use 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 assess many different companies on a similar basis, using the most relevant data points. For Art New Media Spólka Akcyjna, its latest trailing-twelve-month earnings is -ZŁ49.90K, which, in comparison to the previous year’s figure, has become less negative. Since these figures may be somewhat nearsighted, I have computed an annualized five-year value for ANM’s earnings, which stands at -ZŁ1.15M. This suggests that, although net income is negative, it has become less negative over the years.
We can further assess Art New Media Spólka Akcyjna’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Art New Media Spólka Akcyjna has seen an annual decline in revenue of -45.15%, 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 specialty retail industry has been growing, albeit, at a unexciting single-digit rate of 2.99% over the prior twelve months, and 6.97% over the last five years. This shows that although Art New Media Spólka Akcyjna is presently running a loss, whatever recent headwind the industry is facing, Art New Media Spólka Akcyjna is less exposed compared to its peers.
What does this mean?
Though Art New Media Spólka Akcyjna’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 envisage what will occur going forward, and when. The most useful step is to assess company-specific issues Art New Media Spólka Akcyjna may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Art New Media Spólka Akcyjna to get a better picture of the stock by looking at: