Yahoo Finance Recent 5.7% pullback isn't enough to hurt long-term SunOpta (TSE:SOY) shareholders, they're still up 26% over 5 years
It hasn't been the best quarter for SunOpta Inc. (TSE:SOY) shareholders, since the share price has fallen 25% in that time. But the silver lining is the stock is up over five years. However we are not very impressed because the share price is only up 26%, less than the market return of 52%.
Since the long term performance has been good but there's been a recent pullback of 5.7%, let's check if the fundamentals match the share price.
See our latest analysis for SunOpta
Given that SunOpta 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years SunOpta saw its revenue shrink by 15% per year. The falling revenue is arguably somewhat reflected in the lacklustre return of 5% per year over that time. Arguably that's not bad given the soft revenue and loss-making position. Of course, a closer look at the bottom line - and any available analyst forecasts - could reveal an opportunity (if they point to future growth).
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling SunOpta stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
SunOpta shareholders gained a total return of 7.9% during the year. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. It is possible that returns will improve along with the business fundamentals. It's always interesting to track share price performance over the longer term. But to understand SunOpta better, we need to consider many other factors. Take risks, for example - SunOpta has 3 warning signs we think you should be aware of.
But note: SunOpta 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 CA exchanges.
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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