ASX:CAP Income Statement Mar 23rd 18
We can further assess Carpentaria Resources’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Carpentaria Resources has seen an annual decline in revenue of -38.12%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Looking at growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 15.38% over the prior twelve months, and 12.92% over the previous five years. This suggests that, despite the fact that Carpentaria Resources is presently loss-making, it may have gained from industry tailwinds, moving earnings towards to right direction.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to predict what will happen in the future and when. The most valuable step is to examine company-specific issues Carpentaria Resources may be facing and whether management guidance has dependably been met in the past. You should continue to research Carpentaria Resources to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is CAP’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.