Assessing Indoor Skydive Australia Group Limited’s (ASX:IDZ) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess IDZ’s latest performance announced on 31 December 2017 and evaluate these figures to its historical trend and industry movements. View our latest analysis for Indoor Skydive Australia Group
Did IDZ’s recent earnings growth beat the long-term trend and the industry?
For the purpose of this commentary, I like to 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 allows me to examine different companies in a uniform manner using the most relevant data points. For Indoor Skydive Australia Group, its most recent earnings (trailing twelve month) is -AU$340.86K, which compared to the prior year’s figure, has become less negative. Given that these figures may be fairly myopic, I have determined an annualized five-year figure for Indoor Skydive Australia Group’s net income, which stands at -AU$1.54M. This means while net income is negative, it has become less negative over the years.
We can further analyze Indoor Skydive Australia Group’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Indoor Skydive Australia Group’s top-line has grown by 45.01% on average, signalling that the company is in a high-growth phase with expenses racing ahead revenues, leading to annual losses. Scanning growth from a sector-level, the Australian hospitality industry has been growing its average earnings by double-digit 16.33% in the past year, and 19.30% over the past five years. This shows that, even though Indoor Skydive Australia Group is currently loss-making, it may have benefited from industry tailwinds, moving earnings towards to right direction.
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 envisage what will happen in the future and when. The most useful step is to examine company-specific issues Indoor Skydive Australia Group may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Indoor Skydive Australia Group to get a better picture of the stock by looking at: