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Does DataDot Technology Limited's (ASX:DDT) Past Performance Indicate A Stronger Future?
Measuring DataDot Technology Limited's (ASX:DDT) 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 DDT's recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. Check out our latest analysis for DataDot Technology
Were DDT's earnings stronger than its past performances and the industry?
I like to use data from the most recent 12 months, 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 method enables me to examine different stocks on a similar basis, using the most relevant data points. For DataDot Technology, its most recent earnings (trailing twelve month) is -AU$1.15M, which compared to last year’s figure, has become less negative. Since these figures are somewhat nearsighted, I’ve calculated an annualized five-year value for DDT's net income, which stands at -AU$1.33M. This means that, even though net income is negative, it has become less negative over the years.
What does this mean?
Though DataDot Technology's past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to envisage what will occur going forward, and when. The most useful step is to examine company-specific issues DataDot Technology may be facing and whether management guidance has regularly been met in the past. You should continue to research DataDot Technology to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is DDT’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.
- 2. Valuation: What is DDT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DDT is currently mispriced by the market.
- 3. 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.
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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
About ASX:DDT
DataDot Technology
Manufactures and distributes asset identification, management, protection, and authentication solutions in Australia, Europe, and internationally.
Flawless balance sheet with acceptable track record.
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