ASX:RBX Income Statement Mar 6th 18
We can further assess Resource Base’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Resource Base’s revenue growth has been somewhat unexciting, with an annual growth rate of -1.79%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 13.86% in the previous twelve months, and 12.96% over the past five. This means that any tailwind the industry is deriving benefit from, Resource Base has not been able to reap as much as its industry peers.
What does this mean?
Though Resource Base’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 happen in the future and when. The most useful step is to assess company-specific issues Resource Base may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Resource Base to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is RBX’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.