ASX:VMC Income Statement Mar 19th 18
We can further assess Venus Metals’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Venus Metals has seen an annual decline in revenue of -24.24%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Scanning growth from a sector-level, the Australian metals and mining industry has been growing its average earnings by double-digit 15.45% over the prior twelve months, and 13.08% over the previous five years. This means that whatever tailwind the industry is deriving benefit from, Venus Metals has not been able to realize the gains unlike its industry peers.
What does this mean?
Though Venus Metals’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always hard to forecast what will occur going forward, and when. The most valuable step is to examine company-specific issues Venus Metals may be facing and whether management guidance has steadily been met in the past. You should continue to research Venus Metals to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is VMC’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.