Yahoo Finance If You Had Bought RYB Education (NYSE:RYB) Stock A Year Ago, You'd Be Sitting On A 67% Loss, Today
Taking the occasional loss comes part and parcel with investing on the stock market. And unfortunately for RYB Education, Inc. (NYSE:RYB) shareholders, the stock is a lot lower today than it was a year ago. The share price has slid 67% in that time. RYB Education hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. Shareholders have had an even rougher run lately, with the share price down 54% in the last 90 days. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
View our latest analysis for RYB Education
RYB Education isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.
RYB Education grew its revenue by 16% over the last year. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 67% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on RYB Education's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
RYB Education shareholders are down 67% for the year, even worse than the market loss of 0.5%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 54% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. 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. For instance, we've identified 3 warning signs for RYB Education (1 is potentially serious) 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.
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