Yahoo Finance Some Rochester Resources (CVE:RCT) Shareholders Have Copped A Big 65% Share Price Drop
Statistically speaking, long term investing is a profitable endeavour. But that doesn't mean long term investors can avoid big losses. To wit, the Rochester Resources Ltd. (CVE:RCT) share price managed to fall 65% over five long years. That's an unpleasant experience for long term holders.
Check out our latest analysis for Rochester Resources
Rochester Resources isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last five years Rochester Resources saw its revenue shrink by 11% per year. That's definitely a weaker result than most pre-profit companies report. It seems appropriate, then, that the share price slid about 19% annually during that time. We don't generally like to own companies that lose money and don't grow revenues. You might be better off spending your money on a leisure activity. This looks like a really risky stock to buy, at a glance.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at Rochester Resources's financial health with this free report on its balance sheet.
A Different Perspective
It's good to see that Rochester Resources has rewarded shareholders with a total shareholder return of 17% in the last twelve months. That certainly beats the loss of about 19% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
But note: Rochester Resources 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.
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.
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. Thank you for reading.
