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Examining Antipa Minerals Limited’s (ASX:AZY) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess AZY’s latest performance announced on 31 December 2017 and weight these figures against its longer term trend and industry movements. Check out our latest analysis for Antipa Minerals
Were AZY’s earnings stronger than its past performances and the industry?
I like to 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 technique allows me to examine different companies on a similar basis, using new information. For Antipa Minerals, its most recent earnings (trailing twelve month) is -AU$1.29M, which, relative to the previous year’s figure, has become less negative. Since these values may be fairly short-term thinking, I’ve calculated an annualized five-year value for Antipa Minerals’s earnings, which stands at -AU$1.33M. This means that, though net income is negative, it has become less negative over the years.
We can further analyze Antipa Minerals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Antipa Minerals’s top-line has risen by 19.60% on average, indicating that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Eyeballing growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 20.13% in the previous year, and 13.22% over the past five. This means even though Antipa Minerals is currently loss-making, it may have gained 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. With companies that are currently loss-making, it is always hard to forecast what will happen in the future and when. The most valuable step is to assess company-specific issues Antipa Minerals may be facing and whether management guidance has consistently been met in the past. You should continue to research Antipa Minerals to get a more holistic view of the stock by looking at:
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Financial Health: Is AZY’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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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.