ASX:LSR Income Statement Mar 19th 18
We can further analyze Lodestar Minerals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Lodestar Minerals has seen an annual decline in revenue of -8.52%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Viewing growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 15.45% in the prior twelve months, and 13.08% over the previous five years. This shows that, though Lodestar Minerals is presently unprofitable, it may have been aided by industry tailwinds, moving earnings towards to right direction.
What does this mean?
Though Lodestar Minerals’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 predict what will occur going forward, and when. The most useful step is to examine company-specific issues Lodestar Minerals may be facing and whether management guidance has steadily been met in the past. I suggest you continue to research Lodestar Minerals to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is LSR’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 31 December 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.