ASX:ARV Income Statement Mar 3rd 18
We can further analyze Artemis Resources’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Artemis Resources’s top-line has risen by 13.76% on average, indicating that the company is in a high-growth period with expenses racing ahead revenues, leading to annual losses. Inspecting growth from a sector-level, the Australian metals and mining industry has been growing, albeit, at a muted single-digit rate of 8.07% in the past year, and a substantial 13.69% over the past five. This means that, while Artemis Resources is currently unprofitable, it may have benefited from industry tailwinds, moving earnings into a more favorable position.
What does this mean?
Though Artemis Resources’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 valuable step is to examine company-specific issues Artemis Resources may be facing and whether management guidance has regularly been met in the past. You should continue to research Artemis Resources 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 ARV’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.