Measuring Datapulse Technology Limited’s (SGX:BKW) 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 BKW’s recent performance announced on 31 October 2017 and compare these figures to its historical trend and industry movements. View our latest analysis for Datapulse Technology
Was BKW’s recent earnings decline indicative of a tough track record?
For the most up-to-date info, I 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 enables me to assess different companies on a similar basis, using new information. For Datapulse Technology, its most recent earnings (trailing twelve month) is -SGD4.6M, which compared to the previous year’s level, has become more negative. Given that these figures may be fairly myopic, I have determined an annualized five-year figure for BKW’s net income, which stands at SGD4.7M.
Additionally, we can analyze Datapulse Technology’s loss by researching what has been happening in the industry as well as within the company. Firstly, I want to quickly look into the line items. Revenue growth over the last few years has been negative at -23.33%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Looking at growth from a sector-level, the SG technology hardware, storage and peripherals industry has been growing its average earnings by double-digit 42.56% in the previous twelve months, and a more muted 9.02% over the previous five years. This suggests that whatever uplift the industry is profiting from, Datapulse Technology has not been able to realize the gains unlike 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 hard to forecast what will occur going forward, and when. The most useful step is to assess company-specific issues Datapulse Technology may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Datapulse Technology to get a more holistic view of the stock by looking at:
1. Financial Health: Is BKW’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.