ASX:EXG Income Statement Dec 20th 17
Additionally, we can examine Excelsior Gold’s loss by looking at what has been happening in the industry as well as within the company. Firstly, I want to briefly look into the line items. Revenue growth over the last few years has grown by 64.44%, implying that Excelsior Gold is in a high-growth phase with expenses racing ahead high top-line growth rates. Looking at growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a muted single-digit rate of 7.36% in the past year, and 8.50% over the past five years. This shows that, though Excelsior Gold is presently unprofitable, it may have gained from industry tailwinds, moving earnings towards to right direction.
What does this mean?
Though Excelsior Gold’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 valuable step is to examine company-specific issues Excelsior Gold may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Excelsior Gold to get a more holistic view of the stock by looking at:
1. Financial Health: Is EXG’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. Valuation: What is EXG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether EXG is currently mispriced by the market.
3. 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.