ASX:RBX Income Statement Dec 5th 17
Additionally, we can assess Resource Base’s loss by looking at what’s going on in the industry as well as within the company. First, I want to quickly look into the line items. Revenue growth over last couple of years has been fairly subdued, remaining flat on average at 1.38%. Since top-line growth is also pretty flat, the key to profitability moving forward would be controlling costs. Scanning growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a unexciting single-digit rate of 6.76% in the past twelve months, and a substantial 11.62% over the past five years. This means although Resource Base is presently loss-making, it may have been aided by industry tailwinds, moving earnings towards to right direction.
What does this mean?
Though Resource Base’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 forecast what will happen in the future and when. The most insightful step is to assess company-specific issues Resource Base may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Resource Base to get a better picture of the stock by looking at:
1. Financial Health: Is RBX’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.