ASX:FMS Income Statement Feb 21st 18
We can further evaluate Flinders Mines’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Flinders Mines has seen an annual decline in revenue of -58.79%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? 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 prior twelve months, and a substantial 14.63% over the last five years. This suggests that, despite the fact that Flinders Mines is presently running a loss, it may have gained from industry tailwinds, moving earnings towards to right direction.
What does this mean?
Though Flinders Mines’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 occur going forward, and when. The most useful step is to examine company-specific issues Flinders Mines may be facing and whether management guidance has steadily been met in the past. You should continue to research Flinders Mines to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is FMS’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.