Yahoo Finance genedrive (LON:GDR) Shareholders Have Enjoyed A Whopping 429% Share Price Gain
Some genedrive plc (LON:GDR) shareholders are probably rather concerned to see the share price fall 31% over the last three months. But that doesn't change the fact that the returns over the last year have been spectacular. Few could complain about the impressive 429% rise, throughout the period. So we wouldn't blame sellers for taking some profits. While winners often keep winning, it can pay to be cautious after a strong rise.
View our latest analysis for genedrive
Because genedrive made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
genedrive actually shrunk its revenue over the last year, with a reduction of 30%. This is in stark contrast to the splendorous stock price, which has rocketed 429% since this time a year ago. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. To us, a gain like this looks like speculation, but there might be historical trends to back it up.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
It's nice to see that genedrive shareholders have received a total shareholder return of 429% over the last year. That certainly beats the loss of about 8.6% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand genedrive better, we need to consider many other factors. Take risks, for example - genedrive has 6 warning signs (and 1 which is potentially serious) we think you should know about.
Of course genedrive may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
This article by Simply Wall St is general in nature. 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.
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