Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held FinCanna Capital Corp. (CNSX:CALI) over the last year knows what a loser feels like. To wit the share price is down 70% in that time. We wouldn't rush to judgement on FinCanna Capital because we don't have a long term history to look at. The falls have accelerated recently, with the share price down 20% in the last three months.
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Given that FinCanna Capital only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.
In the last year FinCanna Capital saw its revenue grow by 179%. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 70%. 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 how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
We know that FinCanna Capital has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think FinCanna Capital will earn in the future (free profit forecasts).
A Different Perspective
While FinCanna Capital shareholders are down 70% for the year, the market itself is up 1.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 20%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. Before spending more time on FinCanna Capital it might be wise to click here to see if insiders have been buying or selling shares.
But note: FinCanna Capital 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.
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 email@example.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.