Canada markets open in 2 hours 40 minutes
  • S&P/TSX

    18,441.84
    -207.08 (-1.11%)
     
  • S&P 500

    3,640.47
    -78.57 (-2.11%)
     
  • DOW

    29,225.61
    -458.13 (-1.54%)
     
  • CAD/USD

    0.7294
    -0.0017 (-0.23%)
     
  • CRUDE OIL

    81.45
    +0.22 (+0.27%)
     
  • BTC-CAD

    26,737.31
    -43.03 (-0.16%)
     
  • CMC Crypto 200

    446.45
    +0.47 (+0.11%)
     
  • GOLD FUTURES

    1,674.80
    +6.20 (+0.37%)
     
  • RUSSELL 2000

    1,674.93
    -40.31 (-2.35%)
     
  • 10-Yr Bond

    3.7470
    0.0000 (0.00%)
     
  • NASDAQ futures

    11,308.50
    +80.25 (+0.71%)
     
  • VOLATILITY

    30.93
    +0.75 (+2.49%)
     
  • FTSE

    6,924.34
    +42.75 (+0.62%)
     
  • NIKKEI 225

    25,937.21
    -484.84 (-1.83%)
     
  • CAD/EUR

    0.7466
    +0.0024 (+0.32%)
     

Should Greenlane Holdings (NASDAQ:GNLN) Be Disappointed With Their 35% Profit?

·2 min read

Greenlane Holdings, Inc. (NASDAQ:GNLN) shareholders might understandably be very concerned that the share price has dropped 43% in the last quarter. Looking on the brighter side, the stock is actually up over twelve months. However, its return of 35% does fall short of the market return of, 48%.

See our latest analysis for Greenlane Holdings

Greenlane Holdings 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. 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.

Greenlane Holdings actually shrunk its revenue over the last year, with a reduction of 25%. The lacklustre gain of 35% over twelve months, is not a bad result given the falling revenue. We'd want to see progress to profitability before getting too interested in this stock.

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

earnings-and-revenue-growth
earnings-and-revenue-growth

If you are thinking of buying or selling Greenlane Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Greenlane Holdings shareholders have gained 35% for the year. Unfortunately this falls short of the market return of around 48%. We regret to inform any shareholders that the share price dropped another 43% in the last three months. It's possible that this is just a short term share price setback. If the business executes and delivers key metric growth, it could definitely be worth putting on your watchlist. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Greenlane Holdings you should know about.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.