- Oops!Something went wrong.Please try again later.
The Accel Entertainment, Inc. (NYSE:ACEL) share price has had a bad week, falling 10%. But over the last year the share price action has been satisfactory. Indeed the stock is up 96% over twelve months, compared to a market return of about 84%.
Accel Entertainment isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.
Accel Entertainment actually shrunk its revenue over the last year, with a reduction of 26%. Despite the lack of revenue growth, the stock has returned a solid 96% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling Accel Entertainment stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Accel Entertainment shareholders should be happy with the total gain of 96% over the last twelve months. The more recent returns haven't been as impressive as the longer term returns, coming in at just 5.6%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). It's always interesting to track share price performance over the longer term. But to understand Accel Entertainment better, we need to consider many other factors. For instance, we've identified 1 warning sign for Accel Entertainment that you should be aware of.
Of course Accel Entertainment may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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 (at) simplywallst.com.