ASX:NKP Income Statement Nov 29th 17
Additionally, we can assess Nkwe Platinum’s loss by researching what’s going on in the industry along with within the company. Initially, I want to briefly look into the line items. Revenue growth over past few years has been negative at -2.86%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Looking at growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a subdued single-digit rate of 6.76% in the past twelve months, and a substantial 11.86% over the previous five years. This suggests that, while Nkwe Platinum is currently running a loss, it may have been aided by industry tailwinds, moving earnings into a more favorable position.
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 difficult to predict what will occur going forward, and when. The most valuable step is to assess company-specific issues Nkwe Platinum may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Nkwe Platinum to get a more holistic view of the stock by looking at:
1. Financial Health: Is NKP’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. 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.