ASX:ROG Income Statement Apr 3rd 18
We can further examine Red Sky Energy’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the last five years Red Sky Energy has seen an annual decline in revenue of -26.26%, on average. This adverse movement is a driver of the company’s inability to reach breakeven. Has the entire industry experienced this headwind? Viewing growth from a sector-level, the Australian oil and gas industry has been growing growth, more than doubling average earnings over the prior year, and a notable 14.10% over the last five years. This shows that any tailwind the industry is enjoying, Red Sky Energy has not been able to realize the gains unlike its industry peers.
What does this mean?
While past data is useful, it doesn’t tell the whole story. With companies that are currently loss-making, it is always hard to forecast what will happen in the future and when. The most valuable step is to examine company-specific issues Red Sky Energy may be facing and whether management guidance has regularly been met in the past. I suggest you continue to research Red Sky Energy to get a better picture of the stock by looking at:
- 1. Financial Health: Is ROG’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.