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Some Ten Lifestyle Group (LON:TENG) Shareholders Are Down 17%

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Over the last month the Ten Lifestyle Group Plc (LON:TENG) has been much stronger than before, rebounding by 32%. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 17% in a year, falling short of the returns you could get by investing in an index fund.

View our latest analysis for Ten Lifestyle Group

Ten Lifestyle Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong 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.

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Ten Lifestyle Group grew its revenue by 25% over the last year. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 17%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.

You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).

AIM:TENG Income Statement, June 13th 2019
AIM:TENG Income Statement, June 13th 2019

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for Ten Lifestyle Group in this interactive graph of future profit estimates.

A Different Perspective

Ten Lifestyle Group shareholders are down 17% for the year, even worse than the market loss of 0.04%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 26% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.

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.

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.

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. Thank you for reading.