Canada Markets closed

If You Had Bought Pinnacle Renewable Energy (TSE:PL) Stock A Year Ago, You'd Be Sitting On A 59% Loss, Today

Simply Wall St

The nature of investing is that you win some, and you lose some. And there's no doubt that Pinnacle Renewable Energy Inc. (TSE:PL) stock has had a really bad year. The share price has slid 59% in that time. Because Pinnacle Renewable Energy hasn't been listed for many years, the market is still learning about how the business performs. Even worse, it's down 41% in about a month, which isn't fun at all.

Check out our latest analysis for Pinnacle Renewable Energy

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year Pinnacle Renewable Energy grew its earnings per share, moving from a loss to a profit.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action. So it makes sense to check out some other factors.

We don't see any weakness in the Pinnacle Renewable Energy's dividend so the steady payout can't really explain the share price drop. The revenue trend doesn't seem to explain why the share price is down. Unless, of course, the market was expecting a revenue uptick.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

TSX:PL Income Statement, October 18th 2019

We know that Pinnacle Renewable Energy has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Pinnacle Renewable Energy in this interactive graph of future profit estimates.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Pinnacle Renewable Energy, it has a TSR of -57% for the last year. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Given that the market gained 5.2% in the last year, Pinnacle Renewable Energy shareholders might be miffed that they lost 57% (even including dividends) . However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 37% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Before spending more time on Pinnacle Renewable Energy it might be wise to click here to see if insiders have been buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.

  • Finance
    Bloomberg

    U.S. Firms Could Win Lucrative Job of Cleaning Up China's Bad Debt

    (Bloomberg) -- One surprising part of the trade deal struck between U.S. President Donald Trump and Beijing is that U.S. investors won a direct shot at the potentially lucrative job of helping China clean up its heap of bad debt.China is embracing foreign capital as it grapples with a tide of soured

  • Finance
    Bloomberg

    China and Myanmar’s Latest Sign of Improving Relations

    (Bloomberg) -- China and neighboring Myanmar agreed to expedite several projects designated as part of the pan-Eurasia Belt and Road Initiative in a sign of growing ties between both countries.The two sides inked 33 agreements as Chinese President Xi Jinping wrapped up a visit to the Myanmar capital

  • Mideast’s Biggest Lender Focuses on Southeast Asia to Expand
    Finance
    Bloomberg

    Mideast’s Biggest Lender Focuses on Southeast Asia to Expand

    (Bloomberg) -- Qatar National Bank is putting Southeast Asia as the focus of its expansion, the chief executive officer of the Middle East’s biggest lender said.“Our focus really was the Middle East and then we expanded to Southeast Asia where we’re now focusing,” Abdulla Al-Khalifa said in an interview

  • Why Facebook Foes Are Suing Over Zuckerberg Control
    Finance
    Bloomberg

    Why Facebook Foes Are Suing Over Zuckerberg Control

    Jan.18 -- Yavar Bathaee, Pierce Bainbridge partner, comments on Facebook Inc. being sued by four potential competitors who accuse it of anticompetitive behavior and who asked a judge to order Chief Executive Officer Mark Zuckerberg to give up control of the social media behemoth. He speaks with Bloomberg

  • What Do World Powers Really Want in Libya?
    Finance
    Bloomberg

    What Do World Powers Really Want in Libya?

    (Bloomberg) -- Libya has been on fire since the 2011 ouster of Muammar Qaddafi, split between rival leaders fighting for control while world powers try to play kingmaker.Russia, Turkey, Egypt, the United Arab Emirates, Italy, and France have all been drawn in to the confrontation between the United Nations-backed

  • Finance
    Bloomberg

    Australian Open May Halt Play in Elevated Air Pollution

    (Bloomberg) -- Australian organizers of tennis’s first Grand Slam of the year said games may be suspended when air pollution is elevated, after practice and qualification matches were delayed during the week and some players collapsed because of choking smoke from wildfires.Under a new air-quality policy

  • Trio of G-7 Central Banks May Set Tone for 2020: Eco Week Ahead
    Finance
    Bloomberg

    Trio of G-7 Central Banks May Set Tone for 2020: Eco Week Ahead

    (Bloomberg) -- The European Central Bank and Bank of Japan are among Group of Seven institutions leading the charge this week with their first interest-rate meetings of 2020, each of which may set the tone for the year ahead.Newly appointed ECB President Christine Lagarde will inaugurate a once-in-a-generation

  • Finance
    The Canadian Press

    Report: Oregon marijuana sales 420% stronger near Idaho

    PORTLAND, Ore. — Marijuana sales in Oregon along the Idaho state line are 420% the statewide average, according to a state report.Idaho residents are purchasing recreational marijuana in Oregon because it is illegal in Idaho, the report released Friday by the Oregon Office of Economic Analysis said.The

  • Welcome to ‘Peak Decade,’ From Globalization to Central Banks
    Finance
    Bloomberg

    Welcome to ‘Peak Decade,’ From Globalization to Central Banks

    (Bloomberg) -- Amid the Alpine peaks of the Swiss resort of Davos in the week ahead, politicians, investors and executives will be busy debating whether we are witnessing peaks in key drivers of the world economy.From oil demand, car production and the proportion of young people as a share of the population

  • Private Equity's Mountain of Dry Powder Is a Danger Sign
    Finance
    Bloomberg

    Private Equity's Mountain of Dry Powder Is a Danger Sign

    (Bloomberg Opinion) -- Investors keep flocking to private equity in Asia even though returns are declining. They should take heed: Payouts are likely to get worse from here, rather than better.The hunt for yield in a low-interest world has spurred institutional investors from China Investment Corp. to

  • Libya’s Sarraj Says Oil Squeeze Shows Rival Wants No Peace
    Finance
    Bloomberg

    Libya’s Sarraj Says Oil Squeeze Shows Rival Wants No Peace

    (Bloomberg) -- Prime Minister Fayez al-Sarraj called for international pressure to fully restore Libya’s oil exports, saying the port blockage by a commander seeking to unseat him shows he isn’t ready for peace.Sarraj denounced Khalifa Haftar, his Russian-backed antagonist in the OPEC country’s civil

  • Away winter blues! Netherlands marks National Tulip Day
    Finance
    The Canadian Press

    Away winter blues! Netherlands marks National Tulip Day

    AMSTERDAM — Winter blues 0, joyful colour 1.Tulip growers in the Netherlands beat back winter — if only for a day — with a riotous explosion of colour Saturday as they turned an Amsterdam square into a multi-colored feast for cold-dulled senses to mark National Tulip Day.Several thousand people converged

  • UK treasury chief: Some businesses may hurt after Brexit
    Finance
    The Canadian Press

    UK treasury chief: Some businesses may hurt after Brexit

    LONDON — The British government has announced plans for special events on the night of Jan. 31 when the country officially leaves the European Union but the country's treasury chief has admitted that some U.K. business sectors will suffer as a result.Sajid Javid told the Financial Times in an interview

  • 42% of people say this is why they aren't investing in the stock market
    Finance
    Yahoo Finance

    42% of people say this is why they aren't investing in the stock market

    The stock market is continuing its decade-long bull run, with all three of the major indices ending Friday’s trading session at record closes. So why are some potential investors staying on the sidelines?

  • Trudeau, ministers head to Winnipeg for cabinet retreat, western outreach
    Finance
    The Canadian Press

    Trudeau, ministers head to Winnipeg for cabinet retreat, western outreach

    OTTAWA — Prime Minister Justin Trudeau is reviving his practice of holding periodic cabinet retreats outside the nation's capital — an exercise in regional outreach that his office maintains is worth the added cost of ferrying ministers around the country.Beginning Sunday, he and his 36 ministers

  • Rare coin of Britain's King Edward VIII fetches record $1.3M
    Finance
    The Canadian Press

    Rare coin of Britain's King Edward VIII fetches record $1.3M

    LONDON — One of the world's rarest coins, a gold piece bearing the image of Britain's King Edward VIII before his abdication, has sold for 1 million pounds ($1.3 million), setting a new record for a British coin.The historical oddity shows Edward, the uncle of Queen Elizabeth II, before he relinquished

  • Finance
    Bloomberg

    Best Buy Looks Into Allegations of Misconduct by CEO Barry

    (Bloomberg) -- Best Buy Co. said it’s investigating Chief Executive Officer Corie Barry’s personal conduct, a potential blow to the electronics retailer that comes eight years after a former CEO resigned amid a similar probe.The board received an anonymous letter with the allegations against Barry, according

  • Finance
    The Canadian Press

    Alaska agency to hold public hearing on oil assets sale

    ANCHORAGE, Alaska — A public hearing on a sale between two oil giants was scheduled despite a request by the companies to approve the transaction without one, oversight committee members said.The eight-member Regulatory Commission of Alaska was established by Republican Gov. Mike Dunleavy to monitor

  • Splits in France's strike movement trigger fears of violence
    Finance
    The Canadian Press

    Splits in France's strike movement trigger fears of violence

    PARIS — A French government minister warned that seditious groups bent on violence were hijacking the protest movement against pension reform that has gripped the country, after a fire Saturday damaged a renowned Paris restaurant patronized by President Emmanuel Macron.The Paris fire service said the

  • Finance
    Bloomberg

    Libyan Oil Exports Blocked Ahead of Berlin Peace Conference

    (Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.Libyan commander Khalifa Haftar blocked oil exports at ports under his control, slashing output by more than half and posing a potential setback for an international conference on Sunday that

  • Why Beyoncé’s Ivy Park launch could boost Adidas more than Kanye West did with Yeezy's
    Finance
    Yahoo Finance

    Why Beyoncé’s Ivy Park launch could boost Adidas more than Kanye West did with Yeezy's

    The relaunch of Beyoncé’s athleisure brand with Adidas is finally here.

  • Chevron Gets Another Reprieve to Continue Working in Venezuela
    Finance
    Bloomberg

    Chevron Gets Another Reprieve to Continue Working in Venezuela

    (Bloomberg) -- Chevron Corp. and four oilfield service providers won U.S. government approval to continue working in Venezuela for 90 days, allowing the companies’ access to the world’s largest reserves of crude despite sanctions on the crisis-stricken country.The U.S. Treasury Department decision is

  • MyPillow founder details overcoming crack addiction and what drives him
    Finance
    Yahoo Finance

    MyPillow founder details overcoming crack addiction and what drives him

    MyPillow has made itself a household name across America since first entering the manufacturing scene back in the early 2000s — but it didn’t start off as an instant success.

  • China's Xi ends Myanmar visit with flurry of agreements
    Finance
    The Canadian Press

    China's Xi ends Myanmar visit with flurry of agreements

    NAYPYITAW, Myanmar — Chinese President Xi Jinping ended a two-day state visit to Myanmar on Saturday after attending the signing of a raft of agreements buttressing bilateral relations and advancing Beijing's ambitious Belt and Road Initiative, in which his host country is a key player.The two sides

  • The Bezos, Musk and Branson billionaire space race is happening right now
    Finance
    Yahoo Finance

    The Bezos, Musk and Branson billionaire space race is happening right now

    Commercial space travel could end up being the biggest damn thing to happen this year.