ASX:KEY Income Statement Dec 4th 17
We can further evaluate Key Petroleum’s loss by looking at what has been happening in the industry on top of within the company. Firstly, I want to briefly look into the line items. Revenue growth over past couple of years has been negative at -24.41%. The key to profitability here is to make sure the company’s cost growth is well-managed. Looking at growth from a sector-level, the Australian oil, gas and consumable fuels industry has been ramping up average earnings growth of 57.50% over the prior year, and a more muted 5.14% over the past five years. This means any uplift the industry is enjoying, Key Petroleum has not been able to gain as much as its industry peers.
What does this mean?
Though Key Petroleum’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to forecast what will occur going forward, and when. The most insightful step is to examine company-specific issues Key Petroleum may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Key Petroleum to get a more holistic view of the stock by looking at:
1. Financial Health: Is KEY’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.