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Titomic (ASX:TTT) Share Prices Have Dropped 63% In The Last Year

Simply Wall St
·3-min read

Titomic Limited (ASX:TTT) shareholders should be happy to see the share price up 23% in the last month. But that's small comfort given the dismal price performance over the last year. Specifically, the stock price slipped by 63% in that time. The share price recovery is not so impressive when you consider the fall. It may be that the fall was an overreaction.

View our latest analysis for Titomic

Given that Titomic 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Titomic grew its revenue by 1,216% over the last year. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 63%. 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.

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

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think Titomic will earn in the future (free profit forecasts).

A Different Perspective

Titomic shareholders are down 63% for the year, even worse than the market loss of 8.3%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 3.5% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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 3 warning signs for Titomic that you should be aware of.

Titomic is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.