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Investors Who Bought QUIZ (LON:QUIZ) Shares A Year Ago Are Now Down 68%

Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of QUIZ plc (LON:QUIZ) have suffered share price declines over the last year. The share price has slid 68% in that time. Because QUIZ hasn't been listed for many years, the market is still learning about how the business performs. The share price has dropped 69% in three months. But this could be related to the weak market, which is down 30% in the same period.

See our latest analysis for QUIZ

Given that QUIZ didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

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In the last twelve months, QUIZ increased its revenue by 0.3%. That's not a very high growth rate considering it doesn't make profits. It's likely this muted growth has contributed to the share price decline of 68% in the last year. Like many holders, we really want to see better revenue growth in companies that lose money. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for a fundamental improvements before buying, but now could be a good time for some research.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

AIM:QUIZ Income Statement, March 17th 2020
AIM:QUIZ Income Statement, March 17th 2020

If you are thinking of buying or selling QUIZ stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We doubt QUIZ shareholders are happy with the loss of 68% over twelve months. That falls short of the market, which lost 23%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's worth noting that the last three months did the real damage, with a 69% decline. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. It's always interesting to track share price performance over the longer term. But to understand QUIZ better, we need to consider many other factors. For instance, we've identified 3 warning signs for QUIZ (2 are significant) that you should be aware of.

Of course QUIZ 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.