Yahoo Finance Investors in Tritium DCFC (NASDAQ:DCFC) have unfortunately lost 87% over the last year
Even the best investor on earth makes unsuccessful investments. But serious investors should think long and hard about avoiding extreme losses. So we hope that those who held Tritium DCFC Limited (NASDAQ:DCFC) during the last year don't lose the lesson, in addition to the 87% hit to the value of their shares. That'd be enough to make even the strongest stomachs churn. We wouldn't rush to judgement on Tritium DCFC because we don't have a long term history to look at. Furthermore, it's down 33% in about a quarter. That's not much fun for holders. While a drop like that is definitely a body blow, money isn't as important as health and happiness.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
See our latest analysis for Tritium DCFC
Given that Tritium DCFC 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Tritium DCFC grew its revenue by 43% over the last year. We think that is pretty nice growth. Unfortunately, the market wanted something better, given it sent the share price 87% lower during the year. One fear might be that the company might be losing too much money and will need to raise more. It seems that the market has concerns about the future, because that share price action does not seem to reflect the revenue growth at all.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Tritium DCFC stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Given that the market gained 3.8% in the last year, Tritium DCFC shareholders might be miffed that they lost 87%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 33% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 4 warning signs for Tritium DCFC you should be aware of, and 3 of them are potentially serious.
We will like Tritium DCFC better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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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