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Magnetite Mines Limited.
AUSTRALIA MGT.AX 0,25 AU$ 0,00%

With -106.7% Earnings Drop Lately, Did Magnetite Mines Limited (ASX:MGT) Underperform Its Industry?

Publié le 29 novembre 2017

ASX:MGT Income Statement Nov 29th 17

We can further examine Magnetite Mines’s loss by researching what has been happening in the industry as well as within the company. Initially, I want to briefly look into the line items. Revenue growth over last few years has increased by 43.73%, signalling that Magnetite Mines is in a high-growth period with expenses shooting ahead of elevated top-line growth rates. Inspecting growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a muted single-digit rate of 6.76% in the previous twelve months, and a substantial 11.86% over the past five. This means whatever uplift the industry is enjoying, Magnetite Mines has not been able to gain as much as its average peer.

What does this mean?

Though Magnetite Mines’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to envisage what will occur going forward, and when. The most insightful step is to examine company-specific issues Magnetite Mines may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Magnetite Mines to get a more holistic view of the stock by looking at:

1. Financial Health: Is MGT’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.

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