Yahoo Finance If You Had Bought GreenPower Motor (CVE:GPV) Stock Three Years Ago, You'd Be Sitting On A 58% Loss, Today
GreenPower Motor Company Inc. (CVE:GPV) shareholders should be happy to see the share price up 16% in the last month. But over the last three years we've seen a quite serious decline. Regrettably, the share price slid 58% in that period. So it's good to see it climbing back up. After all, could be that the fall was overdone.
Check out our latest analysis for GreenPower Motor
Given that GreenPower Motor 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last three years, GreenPower Motor saw its revenue grow by 93% per year, compound. That's well above most other pre-profit companies. The share price has moved in quite the opposite direction, down 25% over that time, a bad result. It seems likely that the market is worried about the continual losses. 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 graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free report showing analyst forecasts should help you form a view on GreenPower Motor
A Different Perspective
Investors in GreenPower Motor had a tough year, with a total loss of 31%, against a market gain of about 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 0.7% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of GreenPower Motor by clicking this link.
GreenPower Motor is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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.
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