AIM:STI Income Statement Mar 15th 18
We can further evaluate Stratex International’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Stratex International has seen its revenue fall by more than half, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Looking at growth from a sector-level, the UK metals and mining industry has been growing its average earnings by double-digit 43.31% in the previous year, . This is a turnaround from a volatile drop of -7.77% in the past couple of years. This means that whatever uplift the industry is enjoying, Stratex International has not been able to gain as much as its industry peers.
What does this mean?
Though Stratex International’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to envisage what will happen in the future and when. The most valuable step is to assess company-specific issues Stratex International may be facing and whether management guidance has regularly been met in the past. You should continue to research Stratex International to get a better picture of the stock by looking at:
- 1. Financial Health: Is STI’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 31 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.