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If You Had Bought Catapult Group International (ASX:CAT) Stock Three Years Ago, You'd Be Sitting On A 58% Loss, Today

Simply Wall St

While it may not be enough for some shareholders, we think it is good to see the Catapult Group International Limited (ASX:CAT) share price up 13% in a single quarter. Meanwhile over the last three years the stock has dropped hard. Tragically, the share price declined 58% in that time. So it's good to see it climbing back up. While many would remain nervous, there could be further gains if the business can put its best foot forward.

Check out our latest analysis for Catapult Group International

Given that Catapult Group International 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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.

Over three years, Catapult Group International grew revenue at 40% per year. That's well above most other pre-profit companies. The share price has moved in quite the opposite direction, down 25% over that time, a bad result. This could mean hype has come out of the stock because the losses are concerning investors. When we see revenue growth, paired with a falling share price, we can't help wonder if there is an opportunity for those who are willing to dig deeper.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

ASX:CAT Income Statement, October 29th 2019

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

A Different Perspective

It's nice to see that Catapult Group International shareholders have gained 37% (in total) over the last year. What is absolutely clear is that is far preferable to the dismal 25% average annual loss suffered over the last three years. It could well be that the business has turned around -- or else regained the confidence of investors. 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 AU 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.