ASX:MEU Income Statement Jan 22nd 18
Additionally, we can examine Marmota’s loss by looking at what’s going on in the industry as well as within the company. Initially, I want to quickly look into the line items. Revenue growth over the last few years has been negative at -59.47%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Looking at growth from a sector-level, the Australian oil and gas industry has been growing average earnings growth of 57.50% in the prior year, and a less exciting 3.78% over the previous five years. This shows that any tailwind the industry is profiting from, Marmota has not been able to realize the gains unlike its average peer.
What does this mean?
Though Marmota’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to forecast what will happen in the future and when. The most useful step is to assess company-specific issues Marmota may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Marmota to get a more holistic view of the stock by looking at:
1. Financial Health: Is MEU’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.