Yahoo Finance Loss-making Treace Medical Concepts (NASDAQ:TMCI) has seen earnings and shareholder returns follow the same downward trajectory over past -51%
Treace Medical Concepts, Inc. (NASDAQ:TMCI) shareholders should be happy to see the share price up 13% in the last week. But that's small comfort given the dismal price performance over the last year. Specifically, the stock price slipped by 51% in that time. Some might say the recent bounce is to be expected after such a bad drop. Arguably, the fall was overdone.
On a more encouraging note the company has added US$94m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.
Check out our latest analysis for Treace Medical Concepts
Treace Medical Concepts 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Treace Medical Concepts grew its revenue by 62% over the last year. That's a strong result which is better than most other loss making companies. In contrast the share price is down 51% over twelve months. Yes, the market can be a fickle mistress. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
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. This free report showing analyst forecasts should help you form a view on Treace Medical Concepts
A Different Perspective
We doubt Treace Medical Concepts shareholders are happy with the loss of 51% over twelve months. That falls short of the market, which lost 10%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 29%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Treace Medical Concepts better, we need to consider many other factors. Take risks, for example - Treace Medical Concepts has 3 warning signs we think you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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.
