ASX:REZ Income Statement Mar 18th 18
We can further analyze Resources & Energy Group’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Resources & Energy Group’s top-line more than doubled on average, implying that the business is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Scanning 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 13.04% over the past five years. This means that any uplift the industry is benefiting from, Resources & Energy Group has not been able to reap as much as its industry peers.
What does this mean?
Though Resources & Energy Group’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always difficult to predict what will occur going forward, and when. The most insightful step is to assess company-specific issues Resources & Energy Group may be facing and whether management guidance has consistently been met in the past. You should continue to research Resources & Energy Group to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is REZ’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.