Yahoo Finance While Beauty Health (NASDAQ:SKIN) shareholders have made 38% in 1 year, increasing losses might now be front of mind as stock sheds 31% this week
Some The Beauty Health Company (NASDAQ:SKIN) shareholders are probably rather concerned to see the share price fall 43% over the last three months. But that doesn't change the reality that over twelve months the stock has done really well. Looking at the full year, the company has easily bested an index fund by gaining 38%.
Since the long term performance has been good but there's been a recent pullback of 31%, let's check if the fundamentals match the share price.
View our latest analysis for Beauty Health
Beauty Health wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.
In the last year Beauty Health saw its revenue grow by 68%. That's a head and shoulders above most loss-making companies. While the share price gain of 38% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Beauty Health. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Beauty Health is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Beauty Health will earn in the future (free analyst consensus estimates)
A Different Perspective
Beauty Health shareholders should be happy with the total gain of 38% over the last twelve months. We regret to report that the share price is down 43% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand Beauty Health better, we need to consider many other factors. Take risks, for example - Beauty Health has 2 warning signs (and 1 which is significant) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.
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.
