ASX:RAW Income Statement Mar 12th 18
We can further examine Rawson Oil and Gas’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years Rawson Oil and Gas’s top-line has grown by a mere 6.25%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Looking at growth from a sector-level, the Australian oil and gas industry has been ramping up growth, more than doubling average earnings over the previous twelve months, and a more muted 9.52% over the previous five years. This suggests that whatever uplift the industry is benefiting from, Rawson Oil and Gas has not been able to gain as much as its average peer.
What does this mean?
Though Rawson Oil and Gas’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to predict what will happen in the future and when. The most insightful step is to examine company-specific issues Rawson Oil and Gas may be facing and whether management guidance has steadily been met in the past. You should continue to research Rawson Oil and Gas to get a better picture of the stock by looking at:
- 1. Financial Health: Is RAW’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.