Yahoo Finance Investors are selling off Lightspeed Commerce (TSE:LSPD), lack of profits no doubt contribute to shareholders one-year loss
The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Lightspeed Commerce Inc. (TSE:LSPD) share price slid 49% over twelve months. That contrasts poorly with the market decline of 6.9%. On the other hand, the stock is actually up 36% over three years. And the share price decline continued over the last week, dropping some 8.2%.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
Check out our latest analysis for Lightspeed Commerce
Given that Lightspeed Commerce 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last twelve months, Lightspeed Commerce increased its revenue by 43%. We think that is pretty nice growth. Meanwhile, the share price is down 49% over twelve months, which is disappointing given the progress made. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Lightspeed Commerce is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. Given we have quite a good number of analyst forecasts, it might be well worth checking out this free chart depicting consensus estimates.
A Different Perspective
The last twelve months weren't great for Lightspeed Commerce shares, which performed worse than the market, costing holders 49%. The market shed around 6.9%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 11% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. It's always interesting to track share price performance over the longer term. But to understand Lightspeed Commerce better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Lightspeed Commerce you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian 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.
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