ASX:FYI Income Statement Mar 29th 18
We can further analyze FYI Resources’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past five years FYI Resources has seen an annual decline in revenue of -66.64%, 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 15.38% over the previous twelve months, and 12.74% over the past five. This means despite the fact that FYI Resources is presently unprofitable, it may have been aided by industry tailwinds, moving earnings towards to right direction.
What does this mean?
FYI Resources’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. Companies that incur net loss is always difficult to forecast what will occur going forward, and when. The most useful step is to examine company-specific issues FYI Resources may be facing and whether management guidance has consistently been met in the past. I suggest you continue to research FYI Resources to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is FYI’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.