AIM:GRL Income Statement Jan 2nd 18
We can further examine Goldstone Resources’s loss by researching 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 the last few years has been negative, with the actual revenue level reducing by more than half! The key to profitability here is to make sure the company’s cost growth is well-managed. Viewing growth from a sector-level, the UK metals and mining industry has been growing its average earnings by double-digit 36.65% over the past year, . This is a turnaround from a volatile drop of -7.59% in the last few years. This means any uplift the industry is benefiting from, Goldstone Resources has not been able to reap as much as its average peer.
What does this mean?
Though Goldstone Resources’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to envisage what will happen in the future and when. The most valuable step is to assess company-specific issues Goldstone Resources may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research Goldstone Resources to get a more holistic view of the stock by looking at:
1. Financial Health: Is GRL’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.