Advertisement
Canada markets open in 4 hours 31 minutes
  • S&P/TSX

    22,107.08
    +194.56 (+0.89%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CAD/USD

    0.7351
    -0.0021 (-0.29%)
     
  • CRUDE OIL

    81.71
    +0.36 (+0.44%)
     
  • Bitcoin CAD

    96,063.79
    +1,423.38 (+1.50%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,216.20
    +3.50 (+0.16%)
     
  • RUSSELL 2000

    2,114.35
    +44.19 (+2.13%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,491.00
    -12.75 (-0.07%)
     
  • VOLATILITY

    12.96
    +0.18 (+1.41%)
     
  • FTSE

    7,955.51
    +23.53 (+0.30%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6809
    +0.0004 (+0.06%)
     

Investors in A2Z Smart Technologies (CVE:AZ) have unfortunately lost 66% over the last year

The nature of investing is that you win some, and you lose some. And unfortunately for A2Z Smart Technologies Corp. (CVE:AZ) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 66% in that time. We wouldn't rush to judgement on A2Z Smart Technologies because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 54% in the last 90 days.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.

See our latest analysis for A2Z Smart Technologies

Because A2Z Smart Technologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

ADVERTISEMENT

In the last twelve months, A2Z Smart Technologies increased its revenue by 180%. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 66%. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We doubt A2Z Smart Technologies shareholders are happy with the loss of 66% over twelve months. That falls short of the market, which lost 1.8%. 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. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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 7 warning signs for A2Z Smart Technologies (2 shouldn't be ignored) that you should be aware of.

Of course A2Z Smart Technologies may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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

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.