ASX:PEL Income Statement Nov 29th 17
Additionally, we can assess Pelican Resources’s loss by researching what has been happening in the industry along with within the company. First, I want to quickly look into the line items. Revenue growth over last couple of years has been negative at -11.44%. The key to profitability here is to make sure the company’s cost growth is well-managed. Inspecting growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a unexciting single-digit rate of 6.76% over the prior twelve months, and a substantial 11.86% over the past couple of years. This suggests that whatever uplift the industry is benefiting from, Pelican Resources has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to predict what will occur going forward, and when. The most useful step is to assess company-specific issues Pelican Resources may be facing and whether management guidance has regularly been met in the past. You should continue to research Pelican Resources to get a better picture of the stock by looking at:
1. Financial Health: Is PEL’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.