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Bullboard - Stock Discussion Forum Datametrex AI Ltd V.DM

Alternate Symbol(s):  DTMXF

Datametrex AI Limited is a technology-focused company with exposure to artificial intelligence, healthcare, and mobile gaming. It is focused on collecting, analyzing and presenting structured and unstructured data using machine learning and artificial intelligence. The Company's products include AnalyticsGPT, Cyber Security, and Healthcare. AnalyticsGPT platform scans vast data streams from... see more

TSXV:DM - Post Discussion

Datametrex AI Ltd > Datametrex fundamentals look pretty decent
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Post by EnoughBull on Jun 29, 2024 12:44pm

Datametrex fundamentals look pretty decent

Datametrex AI (CVE:DM) has had a rough month with its share price down 16%. However, the company's fundamentals look pretty decent, and long-term financials are usually aligned with future market price movements. Specifically, we decided to study Datametrex AI's ROE in this article.

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

See our latest analysis for Datametrex AI 

How Is ROE Calculated?

 

The formula for ROE is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for Datametrex AI is:

2.5% = CA$882k ÷ CA$35m (Based on the trailing twelve months to March 2022).

The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.03 in profit.

What Has ROE Got To Do With Earnings Growth?

Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

A Side By Side comparison of Datametrex AI's Earnings Growth And 2.5% ROE

It is hard to argue that Datametrex AI's ROE is much good in and of itself. Even when compared to the industry average of 4.4%, the ROE figure is pretty disappointing. In spite of this, Datametrex AI was able to grow its net income considerably, at a rate of 64% in the last five years. We reckon that there could be other factors at play here. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio.

As a next step, we compared Datametrex AI's net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 56% in the same period.

past-earnings-growth
past-earnings-growth

The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about Datametrex AI's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.

Is Datametrex AI Using Its Retained Earnings Effectively?

Given that Datametrex AI doesn't pay any dividend to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business.

Comment by CdnHype on Jun 29, 2024 1:38pm
This post has been removed in accordance with Community Policy
Comment by Bentley2000 on Jun 29, 2024 2:00pm
Excellent post!!!
Comment by samydude on Jun 30, 2024 9:45pm
Bentley, I know that you cannot read fins as you have previously stated yourself, but, can you be so blind as to not see the falsehoods in this post? Please say that you are just being blindly hopeful.... or is this how easily you are swayed with falsehoods?
Comment by Bentley2000 on Jun 30, 2024 11:18pm
It is what it is...and it is what I believe...someone has to be positive....I hate negativity....I never made money on negativity but I have made a ton on believing!!!
Comment by Bentley2000 on Jun 30, 2024 11:18pm
It is what it is...and it is what I believe...someone has to be positive....I hate negativity....I never made money on negativity but I have made a ton on believing!!!
Comment by astutein on Jul 01, 2024 11:32am
Besides Net working  capital  deficiency of  4.96 million (10.22  -5.26), Goodwill and  other  Intangibles there  is also  long  term  debtnoted in liabilities. Balance Sheet shows Capital  Lease  obligations of 2.91  million, taking  total debt to 3.86 million. DM with more  than one  office may not be able  ...more  
Comment by Bentley2000 on Jun 29, 2024 2:17pm
See our latest analysis for Datametrex AI  Click on this ...very interesting...can add stocks to their watch...very interesting.
Comment by astutein on Jun 29, 2024 2:56pm
Fundamentals look pretty  decent. Here are the facts posted for Dec23 on DM  website financials Liquidity-   Current assets  total 5.26 and Current liabilities 10.22 for deficit of 4.96 million. Asset  shown Goodwill o  2.97million plus  other intangibles 10.70 for total  of 12.2 million Audited financial statement  should show correct ...more  
Comment by Bentley2000 on Jun 29, 2024 3:05pm
Thanks.
Comment by samydude on Jun 29, 2024 4:58pm
I am happy to see there is someone else that can see through enough bull's bull**** post, once we have real financials by after hours Tuesday at latest because of the 30th falling on a weekend, the real story will be told! 
Comment by 1standgoal on Jul 02, 2024 9:00am
Wow, a two year old article? Lots has changed in that time. CTO is upon us as predicted. Call the IiROC, someone knew this was halting.
Comment by swyint123888 on Jul 02, 2024 9:18am
Yes it looks like the boys are giving themselves another full day to dump.....buying these shares boggles the mind...... My thought is whoever is buying this junk is because they are gonna take the health division private....it's the only logical thing I can think of.....gamblers to flip for a half penny need a company still afloat for that to work so I don't think these buyers are ...more  
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