Yahoo Finance Cantaloupe (NASDAQ:CTLP) investors are sitting on a loss of 61% if they invested a year ago
The nature of investing is that you win some, and you lose some. And unfortunately for Cantaloupe, Inc. (NASDAQ:CTLP) shareholders, the stock is a lot lower today than it was a year ago. In that relatively short period, the share price has plunged 61%. Notably, shareholders had a tough run over the longer term, too, with a drop of 35% in the last three years. Furthermore, it's down 33% in about a quarter. That's not much fun for holders. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
Check out our latest analysis for Cantaloupe
Given that Cantaloupe only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.
In the last twelve months, Cantaloupe increased its revenue by 30%. That's definitely a respectable growth rate. Meanwhile, the share price tanked 61%, suggesting the market had much higher expectations. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling Cantaloupe stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
We regret to report that Cantaloupe shareholders are down 61% for the year. Unfortunately, that's worse than the broader market decline of 12%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.5% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Cantaloupe better, we need to consider many other factors. Even so, be aware that Cantaloupe is showing 2 warning signs in our investment analysis , you should know about...
Cantaloupe is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
