ASX:KIS Income Statement Jan 19th 18
Additionally, we can examine King Island Scheelite’s loss by looking at 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 grown by 13.79%, indicating that King Island Scheelite 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 metals and mining industry has been growing, albeit, at a muted single-digit rate of 7.36% over the prior year, and a substantial 11.48% over the past five. This means even though King Island Scheelite is currently running a loss, it may have been aided by industry tailwinds, moving earnings in the right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most valuable step is to assess company-specific issues King Island Scheelite may be facing and whether management guidance has dependably been met in the past. You should continue to research King Island Scheelite to get a better picture of the stock by looking at:
1. Financial Health: Is KIS’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.