Yahoo Finance Recent 11% pullback isn't enough to hurt long-term Revasum (ASX:RVS) shareholders, they're still up 88% over 1 year
The Revasum, Inc. (ASX:RVS) share price has had a bad week, falling 11%. But that doesn't change the fact that the returns over the last year have been pleasing. To wit, it had solidly beat the market, up 88%.
Although Revasum has shed US$9.6m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
View our latest analysis for Revasum
Given that Revasum didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Revasum actually shrunk its revenue over the last year, with a reduction of 11%. The stock is up 88% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.
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 Revasum's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Revasum rewarded shareholders with a total shareholder return of 88% over the last year. This recent result is much better than the 14% drop suffered by shareholders each year (on average) over the last three. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. It's always interesting to track share price performance over the longer term. But to understand Revasum better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Revasum (of which 1 is a bit concerning!) you should know about.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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.
