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Did You Manage To Avoid Ceres Global Ag's (TSE:CRP) 37% Share Price Drop?

Simply Wall St

While not a mind-blowing move, it is good to see that the Ceres Global Ag Corp. (TSE:CRP) share price has gained 11% in the last three months. But that doesn't change the fact that the returns over the last five years have been less than pleasing. After all, the share price is down 37% in that time, significantly under-performing the market.

View our latest analysis for Ceres Global Ag

Ceres Global Ag 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last half decade, Ceres Global Ag saw its revenue increase by 21% per year. That's well above most other pre-profit companies. The share price drop of 8.8% per year over five years would be considered let down. So you might argue the Ceres Global Ag should get more credit for its rather impressive revenue growth over the period. So now is probably an apt time to look closer at the stock, if you think it has potential.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

TSX:CRP Income Statement, September 15th 2019

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Ceres Global Ag has rewarded shareholders with a total shareholder return of 34% in the last twelve months. That certainly beats the loss of about 8.8% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.