ASX:AVQ Income Statement Mar 13th 18
We can further assess Axiom Mining’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Axiom Mining’s top-line has increased by 28.70% on average, indicating that the company is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Viewing growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 13.86% over the previous twelve months, and 13.00% over the past five. This suggests that, even though Axiom Mining is currently unprofitable, it may have benefited from industry tailwinds, moving earnings into a more favorable position.
What does this mean?
Though Axiom Mining’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 occur going forward, and when. The most valuable step is to examine company-specific issues Axiom Mining may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research Axiom Mining to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is AVQ’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 September 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.