TSXV:GSA Income Statement Mar 13th 18
We can further examine Groundstar Resources’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Groundstar Resources’s revenue growth has been fairly unexciting, with an annual growth rate of 1.28%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Scanning growth from a sector-level, the Canadian oil and gas industry has been growing, albeit, at a unexciting single-digit rate of 7.63% in the previous year, and a flatter -0.12% over the past five. This means any uplift the industry is profiting from, Groundstar Resources has not been able to gain as much as its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always difficult to envisage what will occur going forward, and when. The most insightful step is to assess company-specific issues Groundstar Resources may be facing and whether management guidance has dependably been met in the past. I suggest you continue to research Groundstar Resources to get a more holistic view of the stock by looking at:
- 1. Financial Health: Is GSA’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 October 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.