ASX:SGQ Income Statement Jan 11th 18
Additionally, we can examine St George Mining’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 last couple of years has been relatively unexciting, remaining flat on average at 0.68%. Given that top-line growth is also pretty stale the key to profitability moving forward would be controlling costs. Scanning growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a subdued single-digit rate of 7.36% in the prior year, and a substantial 11.48% over the previous five years. This shows that, while St George Mining is presently running a loss, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
Though St George Mining’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to forecast what will happen in the future and when. The most useful step is to examine company-specific issues St George Mining may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research St George Mining to get a more holistic view of the stock by looking at:
1. Financial Health: Is SGQ’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 trailing twelve months from 30 June 2017. 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.