ASX:LNY Income Statement Mar 8th 18
We can further assess Laneway Resources’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Laneway Resources has seen an annual decline in revenue of -58.48%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Inspecting growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 13.86% over the past twelve months, and 13.19% over the past five years. This means any uplift the industry is profiting from, Laneway Resources has not been able to leverage it as much as its average peer.
What does this mean?
Laneway Resources’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. With companies that are currently loss-making, it is always difficult to envisage what will happen in the future and when. The most insightful step is to assess company-specific issues Laneway Resources may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Laneway Resources to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is LNY’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 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.