ASX:ENT Income Statement Mar 14th 18
We can further assess Enterprise Metals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Enterprise Metals’s top-line has risen by 39.39% on average, signalling that the company is in a high-growth phase 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 15.35% in the prior year, and 13.19% over the past five. This suggests that, despite the fact that Enterprise Metals is presently loss-making, it may have benefited from industry tailwinds, moving earnings in the right direction.
What does this mean?
Enterprise Metals’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 hard to forecast what will occur going forward, and when. The most useful step is to assess company-specific issues Enterprise Metals may be facing and whether management guidance has steadily been met in the past. You should continue to research Enterprise Metals to get a better picture of the stock by looking at:
- 1. Financial Health: Is ENT’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.