Australia markets closed
  • ALL ORDS

    7,418.60
    -29.00 (-0.39%)
     
  • AUD/USD

    0.6712
    -0.0041 (-0.60%)
     
  • ASX 200

    7,229.10
    -30.40 (-0.42%)
     
  • OIL

    73.99
    -2.29 (-3.00%)
     
  • GOLD

    1,758.30
    +4.30 (+0.25%)
     
  • BTC-AUD

    24,200.95
    -599.98 (-2.42%)
     
  • CMC Crypto 200

    380.90
    -1.76 (-0.46%)
     

Even after rising 3.5% this past week, Sprinklr (NYSE:CXM) shareholders are still down 25% over the past year

The simplest way to benefit from a rising market is to buy an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in Sprinklr, Inc. (NYSE:CXM) have tasted that bitter downside in the last year, as the share price dropped 25%. That's disappointing when you consider the market declined 15%. Sprinklr may have better days ahead, of course; we've only looked at a one year period.

While the last year has been tough for Sprinklr shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

See our latest analysis for Sprinklr

Because Sprinklr made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

Sprinklr grew its revenue by 30% over the last year. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 25%. 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.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think Sprinklr will earn in the future (free profit forecasts).

A Different Perspective

We doubt Sprinklr shareholders are happy with the loss of 25% over twelve months. That falls short of the market, which lost 15%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 6.6% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. It's always interesting to track share price performance over the longer term. But to understand Sprinklr better, we need to consider many other factors. For instance, we've identified 3 warning signs for Sprinklr 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 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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here