ASX:CTP Income Statement Dec 14th 17
Additionally, we can evaluate Central Petroleum’s loss by researching what has been happening in the industry as well as within the company. Firstly, I want to quickly look into the line items. Revenue growth over last couple of years has increased by 50.65%, indicating that Central Petroleum is in a high-growth period with expenses racing ahead elevated top-line growth rates. 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 momentous change, given that the industry has constantly been delivering a a robust growth of 28.17% in the past couple of years. This means whatever near-term headwind the industry is facing, the impact on Central Petroleum has been softer relative to its peers.
What does this mean?
Though Central 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 happen in the future and when. The most valuable step is to examine company-specific issues Central Petroleum may be facing and whether management guidance has dependably been met in the past. You should continue to research Central Petroleum to get a better picture of the stock by looking at:
1. Financial Health: Is CTP’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.