ASX:LIO Income Statement Dec 12th 17
Additionally, we can analyze Lion Energy’s loss by researching what has been happening in the industry as well as within the company. First, I want to briefly look into the line items. Revenue growth over past few years has been negative at -7.07%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Scanning growth from a sector-level, the Australian oil and gas industry has been enduring some headwinds over the past year, leading to an average earnings drop of -25.18%. This is a significant change, given that the industry has constantly been delivering a a strong growth of 28.17% in the previous five years. This shows that any near-term headwind the industry is enduring, it’s hitting Lion Energy harder than its peers.
What does this mean?
Though Lion Energy’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to envisage what will occur going forward, and when. The most insightful step is to assess company-specific issues Lion Energy may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Lion Energy to get a more holistic view of the stock by looking at:
1. Financial Health: Is LIO’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.