Yahoo Finance The one-year earnings decline has likely contributed toGuardforce AI's (NASDAQ:GFAI) shareholders losses of 24% over that period
Over the last month the Guardforce AI Co., Limited (NASDAQ:GFAI) has been much stronger than before, rebounding by 168%. But that doesn't change the reality of under-performance over the last twelve months. After all, the share price is down 24% in the last year, significantly under-performing the market.
After losing 3.2% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
Check out our latest analysis for Guardforce AI
Given that Guardforce AI 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Guardforce AI's revenue didn't grow at all in the last year. In fact, it fell 9.7%. That's not what investors generally want to see. The stock price has languished lately, falling 24% in a year. What would you expect when revenue is falling, and it doesn't make a profit? It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free report showing analyst forecasts should help you form a view on Guardforce AI
A Different Perspective
We doubt Guardforce AI shareholders are happy with the loss of 24% over twelve months. That falls short of the market, which lost 8.4%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Putting aside the last twelve months, it's good to see the share price has rebounded by 143%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand Guardforce AI better, we need to consider many other factors. For example, we've discovered 3 warning signs for Guardforce AI (2 can't be ignored!) that you should be aware of before investing here.
But note: Guardforce AI may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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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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.
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