Understanding Antipa Minerals Limited’s (ASX:AZY) performance as a company requires examining more than earnings from one point in time. Today I will take you through a basic sense check to gain perspective on how Antipa Minerals is doing by evaluating its latest earnings with its longer term trend as well as its industry peers’ performance over the same period. Check out our latest analysis for Antipa Minerals
Commentary On AZY’s Past Performance
I look at 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 technique enables me to assess many different companies on a similar basis, using the most relevant data points. For Antipa Minerals, its most recent trailing-twelve-month earnings is -AU$1.60M, which, in comparison to the previous year’s figure, has become more negative. Since these figures are relatively short-term, I’ve estimated an annualized five-year figure for AZY’s net income, which stands at -AU$1.32M. This doesn’t seem to paint a better picture, as earnings seem to have consistently been getting more and more negative over time.We can further examine 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 22.75% on average, indicating that the company is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Looking at growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 13.86% in the previous year, and 13.19% over the last five years. This shows that whatever uplift the industry is profiting from, Antipa Minerals has not been able to realize the gains unlike its average peer.
What does this mean?
Though Antipa Minerals’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to predict what will occur going forward, and when. The most useful step is to examine company-specific issues Antipa Minerals may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Antipa Minerals to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
- 1. Financial Health: Is AZY’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
- 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a free list of these great stocks here.