While CryptoStar Corp. (CVE:CSTR) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 22% in the last quarter. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 200% in that time. So some might not be surprised to see the price retrace some. The real question is whether the business is trending in the right direction.
CryptoStar isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year CryptoStar saw its revenue shrink by 37%. So we would not have expected the share price to rise 200%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling CryptoStar stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
CryptoStar boasts a total shareholder return of 200% for the last year. We regret to report that the share price is down 22% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. Before spending more time on CryptoStar it might be wise to click here to see if insiders have been buying or selling shares.
But note: CryptoStar may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.