AIM:MTL Income Statement Mar 24th 18
We can further analyze Metals Exploration’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Metals Exploration’s top-line more than doubled on average, signalling that the business is in a high-growth period with expenses shooting ahead of revenues, leading to annual losses. Looking at growth from a sector-level, the UK metals and mining industry has been ramping up average earnings growth of 55.34% in the past twelve months, . This is a a substantial turnaround from a volatile drop of -7.51% in the previous few years. This means that any uplift the industry is deriving benefit from, Metals Exploration has not been able to realize the gains unlike its industry peers.
What does this mean?
Though Metals Exploration’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 valuable step is to assess company-specific issues Metals Exploration may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Metals Exploration to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is MTL’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.