Where Brockman Mining Limited (SEHK:159) Stands In Terms Of Earnings Growth Against Its Industry
Assessing Brockman Mining Limited’s (SEHK:159) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how Brockman Mining is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its metals and mining industry peers. View our latest analysis for Brockman Mining
Commentary On 159’s Past Performance
For the most up-to-date info, 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 allows me to analyze many different companies in a uniform manner using new information. Brockman Mining’s latest twelve-month earnings -HK$38.3M, which, against the prior year’s level, has become less negative. Given that these values are relatively myopic, I’ve created an annualized five-year value for Brockman Mining’s earnings, which stands at -HK$473.3M. This shows that, although net income is negative, it has become less negative over the years.
Additionally, we can assess Brockman Mining’s loss by researching what has been happening in the industry as well as within the company. First, I want to briefly look into the line items. Revenue growth over last few years has been negative at -40.56%. The key to profitability here is to make sure the company’s cost growth is well-managed. Inspecting growth from a sector-level, the HK metals and mining industry has been multiplying growth, more than doubling average earnings in the previous year, . This is a a solid turnaround from a volatile drop of -15.80% in the previous couple of years. This shows that whatever tailwind the industry is benefiting from, Brockman Mining has not been able to leverage it as much as its average peer.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Companies that incur net loss is always hard to envisage what will happen in the future and when. The most valuable step is to examine company-specific issues Brockman Mining may be facing and whether management guidance has consistently been met in the past. You should continue to research Brockman Mining to get a better picture of the stock by looking at:
1. Financial Health: Is 159’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 last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. 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.
