In This Article:
Understanding how Dubber Corporation Limited (ASX:DUB) is performing as a company requires looking at more than just a years’ earnings. Today I will run you through a basic sense check to gain perspective on how Dubber is doing by comparing its latest earnings with its long-term trend as well as the performance of its internet industry peers. Check out our latest analysis for Dubber
Despite a decline, did DUB underperform the long-term trend and the industry?
For the most up-to-date info, I use 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 method enables me to examine different stocks on a more comparable basis, using the latest information. For Dubber, its most recent bottom-line (trailing twelve month) is -AU$10.83M, which compared to the previous year’s level, has become more negative. Since these figures may be relatively myopic, I’ve calculated an annualized five-year value for DUB’s net income, which stands at -AU$4.11M. This doesn’t seem to paint a better picture, since earnings seem to have gradually been getting more and more negative over time.
We can further evaluate Dubber’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Dubber’s top-line has grown by 36.59% on average, implying 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 Australian internet industry has been growing its average earnings by double-digit 35.31% over the prior twelve months, and 27.02% over the past five years. This shows that any uplift the industry is deriving benefit from, Dubber has not been able to gain as much as its industry peers.
What does this mean?
Though Dubber’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to predict what will happen in the future and when. The most useful step is to assess company-specific issues Dubber may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Dubber to get a better picture of the stock by looking at:
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Financial Health: Is DUB’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.
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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 trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.