Yahoo Finance Joules Group's (LON:JOUL) Shareholders Are Down 62% On Their Shares
Joules Group Plc (LON:JOUL) shareholders should be happy to see the share price up 22% in the last month. Meanwhile over the last three years the stock has dropped hard. Indeed, the share price is down a tragic 62% in the last three years. So the improvement may be a real relief to some. The rise has some hopeful, but turnarounds are often precarious.
Check out our latest analysis for Joules Group
Joules Group wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last three years, Joules Group saw its revenue grow by 8.7% per year, compound. That's a fairly respectable growth rate. So some shareholders would be frustrated with the compound loss of 17% per year. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Joules Group stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
The last twelve months weren't great for Joules Group shares, which performed worse than the market, costing holders 56%. Meanwhile, the broader market slid about 11%, likely weighing on the stock. Shareholders have lost 17% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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. For instance, we've identified 4 warning signs for Joules Group (1 is significant) that you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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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