Examining Dart Mining NL’s (ASX:DTM) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess DTM’s latest performance announced on 30 June 2017 and compare these figures to its longer term trend and industry movements. View our latest analysis for Dart Mining
How Well Did DTM Perform?
For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This blend enables me to analyze many different companies on a similar basis, using the most relevant data points. Dart Mining’s latest twelve-month earnings -A$0.7M, which, in comparison to the previous year’s level, has become less negative. Since these values are somewhat short-term, I’ve determined an annualized five-year value for DTM’s earnings, which stands at -A$1.0M. This means although net income is negative, it has become less negative over the years.We can further examine Dart Mining’s loss by researching what has been happening in the industry as well as within the company. Initially, I want to quickly look into the line items. Revenue growth over the last few years has been negative at -2.79%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Inspecting growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a muted single-digit rate of 7.36% over the prior year, and 8.50% over the past five. This shows that whatever tailwind the industry is profiting from, Dart Mining has not been able to leverage it as much as its average peer.
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 difficult to predict what will happen in the future and when. The most insightful step is to examine company-specific issues Dart Mining may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Dart Mining to get a better picture of the stock by looking at:
1. Financial Health: Is DTM’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. 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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.