LSE:AVM Income Statement Mar 6th 18
We can further evaluate Avocet Mining’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Avocet Mining has seen an annual decline in revenue of -18.60%, 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 UK metals and mining industry has been growing its average earnings by double-digit 31.29% in the prior year, . This is a change from a volatile drop of -7.77% in the previous few years. This means while Avocet Mining is currently unprofitable, it may have only just benefited from the recent industry expansion, moving earnings into a more favorable position.
What does this mean?
Though Avocet Mining’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 predict what will occur going forward, and when. The most valuable step is to examine company-specific issues Avocet Mining may be facing and whether management guidance has dependably been met in the past. You should continue to research Avocet Mining to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is AVM’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. Valuation: What is AVM worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AVM is currently mispriced by the market.
- 3. 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.