In This Article:
Measuring Neurotech International Limited’s (ASX:NTI) 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 NTI’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. View our latest analysis for Neurotech International
Commentary On NTI’s Past Performance
I like to 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 allows me to examine different companies in a uniform manner using the latest information. For Neurotech International, its most recent bottom-line (trailing twelve month) is -AU$3.86M, which, against last year’s figure, has become less negative. Given that these figures are somewhat nearsighted, I’ve created an annualized five-year figure for NTI’s net income, which stands at -AU$3.33M. This means Neurotech International has historically performed better than recently, even though it seems like earnings are now heading back towards a more favorable position once more.
We can further examine Neurotech International’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Neurotech International has seen an annual decline in revenue of -57.10%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the Australian medical equipment industry has been enduring some headwinds in the past year, leading to an average earnings drop of -3.23%. This is a momentous change, given that the industry has constantly been delivering a a notable growth of 14.86% in the last five years. This shows that even though Neurotech International is currently loss-making, any near-term headwind the industry is enduring, Neurotech International is relatively better-cushioned than its peers.
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 predict what will happen in the future and when. The most insightful step is to assess company-specific issues Neurotech International may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Neurotech International to get a better picture of the stock by looking at: