Increase in profitability and industry-beating performance can be essential considerations in a stock for some investors. In this article, I will take a look at Argonaut Gold Inc’s ( TSX:AR ) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. Check out our latest analysis for Argonaut Gold
Were AR’s earnings stronger than its past performances and the industry?
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 allows me to assess different stocks in a uniform manner using new information. For Argonaut Gold, its most recent trailing-twelve-month earnings is US$24.06M, which, in comparison to last year’s level, has escalated by a substantial 98.74%. Given that these figures may be somewhat short-term, I’ve created an annualized five-year figure for Argonaut Gold’s net income, which stands at -US$11.69M This shows that, generally, Argonaut Gold has been able to gradually grow its bottom line over the past couple of years as well.
How has it been able to do this? Let’s see whether it is solely because of industry tailwinds, or if Argonaut Gold has seen some company-specific growth. Over the last few years, Argonaut Gold top-line expansion has outpaced earnings and the growth rate of expenses. Though this resulted in a margin contraction, it has moderated Argonaut Gold’s earnings contraction. Inspecting growth from a sector-level, the Canadian metals and mining industry has been growing its average earnings by double-digit 27.16% over the prior twelve months, and 14.40% over the past five years. This suggests that whatever tailwind the industry is enjoying, Argonaut Gold is capable of leveraging this to its advantage.
What does this mean?
Though Argonaut Gold’s past data is helpful, it is only one aspect of my investment thesis. While Argonaut Gold has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. I suggest you continue to research Argonaut Gold to get a more holistic view of the stock by looking at:
- Future Outlook : What are well-informed industry analysts predicting for AR’s future growth? Take a look at our free research report of analyst consensus for AR’s outlook.
- Financial Health : Is AR’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 .
- 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 March 2018. 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.