ASX:PGY Income Statement Dec 27th 17
We can further analyze Pilot Energy’s loss by looking at what has been happening in the industry as well as within the company. Initially, I want to briefly look into the line items. Revenue growth over the past few years has more than doubled, indicating that Pilot Energy is in a high-growth phase with expenses racing ahead high top-line growth rates, leading to yearly losses. Eyeballing growth from a sector-level, the Australian oil and gas industry has been enduring some headwinds in the previous year, leading to an average earnings drop of -25.18%. This is a major change, given that the industry has constantly been delivering a a robust growth of 28.17% in the past couple of years. This means that although Pilot Energy is currently running a loss, any recent headwind the industry is facing, Pilot Energy is relatively better-cushioned than its peers.
What does this mean?
Though Pilot Energy’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 predict what will happen in the future and when. The most insightful step is to assess company-specific issues Pilot Energy may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Pilot Energy to get a better picture of the stock by looking at:
1. Financial Health: Is PGY’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.