Yahoo Finance Flux Power Holdings (NASDAQ:FLUX) adds US$11m to market cap in the past 7 days, though investors from three years ago are still down 67%
Flux Power Holdings, Inc. (NASDAQ:FLUX) shareholders will doubtless be very grateful to see the share price up 32% in the last month. Meanwhile over the last three years the stock has dropped hard. Regrettably, the share price slid 67% in that period. So it's good to see it climbing back up. While many would remain nervous, there could be further gains if the business can put its best foot forward.
Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline.
See our latest analysis for Flux Power Holdings
Given that Flux Power Holdings 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last three years, Flux Power Holdings saw its revenue grow by 55% per year, compound. That is faster than most pre-profit companies. The share price has moved in quite the opposite direction, down 19% over that time, a bad result. This could mean hype has come out of the stock because the losses are concerning investors. When we see revenue growth, paired with a falling share price, we can't help wonder if there is an opportunity for those who are willing to dig deeper.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Flux Power Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Flux Power Holdings shareholders are down 20% for the year, but the market itself is up 36%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 10%, each year, over five years. It could be that the recent sell-off is an opportunity, 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 Flux Power Holdings better, we need to consider many other factors. For instance, we've identified 4 warning signs for Flux Power Holdings (1 is significant) that you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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