We can further examine Vango Mining’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Vango Mining has seen an annual decline in revenue of -13.16%, 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 15.38% in the previous year, and 12.92% over the past half a decade. This means that any tailwind the industry is benefiting from, Vango Mining has not been able to leverage it as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to forecast what will happen in the future and when. The most useful step is to assess company-specific issues Vango Mining may be facing and whether management guidance has regularly been met in the past. I recommend you continue to research Vango Mining to get a better picture of the stock by looking at:
- 1. Financial Health: Is VAN’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 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.