Did Daxor Corporation’s (NYSEMKT:DXR) Earnings Growth Outperform The Industry?
After looking at Daxor Corporation’s (AMEX:DXR) latest earnings announcement (30 June 2017), I found it useful to revisit the company’s performance in the past couple of years and assess this against the most recent figures. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether Daxor’s performance has been impacted by industry movements. In this article I briefly touch on my key findings. See our latest analysis for Daxor
Could DXR beat the long-term trend and outperform its industry?
For the most up-to-date info, I 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 blend enables me to assess many different companies in a uniform manner using the most relevant data points. For Daxor, its latest twelve-month earnings is -$0.8M, which, against the prior year’s figure, has become less negative. Given that these values are relatively short-term, I’ve created an annualized five-year value for DXR’s earnings, which stands at -$2.8M. This means though net income is negative, it has become less negative over the years.
We can further evaluate Daxor’s loss by looking at what has been happening in the industry as well as within the company. First, I want to quickly look into the line items. Revenue growth over the last few years has been negative at -13.10%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Inspecting growth from a sector-level, the US medical equipment industry has been growing its average earnings by double-digit 18.95% over the prior year, and a more muted 9.07% over the past five. This means that, despite the fact that Daxor is presently loss-making, it may have gained from industry tailwinds, moving earnings towards to right direction.
What does this mean?
Daxor’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 predict what will occur going forward, and when. The most useful step is to assess company-specific issues Daxor may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Daxor to get a more holistic view of the stock by looking at:
1. Financial Health: Is DXR’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.
2. Valuation: What is DXR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether DXR is currently mispriced by the market.
3. 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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.
