ASX:HMX Income Statement Mar 2nd 18
We can further analyze Hammer Metals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Hammer Metals’s top-line has grown by 42.62% on average, indicating that the company is in a high-growth phase with expenses shooting ahead of revenues, leading to annual losses. Inspecting growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a unexciting single-digit rate of 8.07% over the past twelve months, and a substantial 13.69% over the past five. This means that, while Hammer Metals is currently unprofitable, it may have gained from industry tailwinds, moving earnings in the right direction.
What does this mean?
Though Hammer Metals’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to envisage what will occur going forward, and when. The most insightful step is to assess company-specific issues Hammer Metals may be facing and whether management guidance has consistently been met in the past. I recommend you continue to research Hammer Metals to get a better picture of the stock by looking at the areas below. Just a heads up – to access some parts of the Simply Wall St research tool you might be asked to create a free account, but it takes just one click and the information they provide is definitely worth it in my opinion.
- 1. Financial Health: Is HMX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why Simply Wall St does it for you. Check out important financial health checks here.
- 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore a 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.