Interested In Xtract Resources Plc (LON:XTR)? Here’s What Its Recent Performance Looks Like
Examining Xtract Resources Plc’s (AIM:XTR) past track record of performance is an insightful exercise for investors. It allows us to reflect on whether or not the company has met or exceed expectations, which is a great indicator for future performance. Today I will assess XTR’s latest performance announced on 30 June 2017 and compare these figures to its longer term trend and industry movements. Check out our latest analysis for Xtract Resources
How Did XTR’s Recent Performance Stack Up Against Its Past?
To account for any quarterly or half-yearly updates, I use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. This blend enables me to analyze different stocks on a more comparable basis, using new information. For Xtract Resources, its most recent earnings (trailing twelve month) is -£2.5M, which, relative to the previous year’s level, has become less negative. Since these figures may be relatively short-term thinking, I’ve computed an annualized five-year figure for Xtract Resources’s earnings, which stands at -£2.6M. This suggests that, even though net income is negative, it has become less negative over the years.
We can further assess Xtract Resources’s loss by researching what has been happening in the industry as well as within the company. Firstly, I want to quickly look into the line items. Revenue growth over the past couple of years has been negative at -58.98%. The key to profitability here is to make sure the company’s cost growth is well-controlled. Viewing growth from a sector-level, the UK industry industry has been growing its average earnings by double-digit 38.06% over the previous year, . This is a change from a volatile drop of -7.50% in the last couple of years. This shows that, though Xtract Resources is presently running a loss, it may have only just benefited from the recent industry expansion, moving earnings into a more favorable position.
What does this mean?
Though Xtract Resources’s past data is helpful, it is only one aspect of my investment thesis. With companies that are currently loss-making, it is always hard to predict what will occur going forward, and when. The most insightful step is to assess company-specific issues Xtract Resources may be facing and whether management guidance has steadily been met in the past. I recommend you continue to research Xtract Resources to get a more holistic view of the stock by looking at:
1. Financial Health: Is XTR’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.
