Measuring Omni Market Tide Limited’s (DB:A4B) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess A4B’s recent performance announced on 30 June 2017 and compare these figures to its historical trend and industry movements. View our latest analysis for Omni Market Tide
Could A4B beat the long-term trend and outperform its industry?
I like to use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This method allows me to assess different stocks on a more comparable basis, using new information. For Omni Market Tide, its most recent bottom-line (trailing twelve month) is -AU$2.26M, which, against the previous year’s level, has become less negative. Since these values are fairly short-term thinking, I’ve created an annualized five-year figure for A4B’s earnings, which stands at -AU$2.72M. This suggests that, while net income is negative, it has become less negative over the years.We can further examine Omni Market Tide’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Omni Market Tide’s top-line has increased by 27.83% on average, indicating that the company is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Inspecting growth from a sector-level, the DE software industry has been growing its average earnings by double-digit 11.53% in the past year, and 10.97% over the past five. This shows that, though Omni Market Tide is currently running a loss, it may have benefited from industry tailwinds, moving earnings into a more favorable position.
What does this mean?
Omni Market Tide’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to envisage what will happen in the future and when. The most insightful step is to examine company-specific issues Omni Market Tide may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research Omni Market Tide to get a more holistic view 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 A4B’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.