ASX:CXO Income Statement Feb 20th 18
We can further analyze Core Exploration’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Core Exploration’s top-line has increased by 26.20% on average, signalling that the company is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Scanning growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a unexciting single-digit rate of 8.07% in the previous year, and a substantial 14.63% over the last five years. This suggests that whatever uplift the industry is profiting from, Core Exploration has not been able to gain as much as its industry peers.
What does this mean?
Core Exploration’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to envisage what will happen in the future and when. The most valuable step is to assess company-specific issues Core Exploration may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Core Exploration to get a better picture of the stock by looking at:
- 1. Financial Health: Is CXO’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.