AIM:SEY Income Statement Feb 19th 18
We can further evaluate Sterling Energy’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Sterling Energy has seen an annual decline in revenue of -25.23%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Eyeballing growth from a sector-level, the UK oil and gas industry has been increasing growth, more than doubling average earnings over the previous year, . This is a a solid change from a volatile drop of -2.03% in the last couple of years. This suggests that any uplift the industry is enjoying, Sterling Energy has not been able to reap as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to predict what will happen in the future and when. The most valuable step is to examine company-specific issues Sterling Energy may be facing and whether management guidance has dependably been met in the past. You should continue to research Sterling Energy to get a better picture of the stock by looking at:
- 1. Financial Health: Is SEY’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.