Yahoo Finance City of London Group (LON:CIN) Share Prices Have Dropped 37% In The Last Year
While it may not be enough for some shareholders, we think it is good to see the City of London Group plc (LON:CIN) share price up 15% in a single quarter. But in truth the last year hasn't been good for the share price. In fact the stock is down 37% in the last year, well below the market return.
Check out our latest analysis for City of London Group
City of London Group 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. 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 year City of London Group saw its revenue grow by 21%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 37%. You might even wonder if the share price was previously over-hyped. But if revenue keeps growing, then at a certain point the share price would likely follow.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
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
The last twelve months weren't great for City of London Group shares, which performed worse than the market, costing holders 37%. Meanwhile, the broader market slid about 2.8%, likely weighing on the stock. The three-year loss of 5% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. 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 4 warning signs for City of London Group (2 don't sit too well with us) that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
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. 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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