Even the best stock pickers will make plenty of bad investments. Anyone who held Agrios Global Holdings Ltd. (CNSX:AGRO) over the last year knows what a loser feels like. The share price is down a hefty 53% in that time. Because Agrios Global Holdings hasn't been listed for many years, the market is still learning about how the business performs. The falls have accelerated recently, with the share price down 32% in the last three months.
Given that Agrios Global Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Agrios Global Holdings grew its revenue by 981% over the last year. That's well above most other pre-profit companies. Meanwhile, the share price slid 53%. This could mean hype has come out of the stock because the bottom line is concerning investors. 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 below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Agrios Global Holdings's financial health with this free report on its balance sheet.
A Different Perspective
While Agrios Global Holdings shareholders are down 53% for the year, the market itself is up 11%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. The share price decline has continued throughout the most recent three months, down 32%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. Before spending more time on Agrios Global Holdings it might be wise to click here to see if insiders have been buying or selling shares.
Of course Agrios Global Holdings 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 CA exchanges.
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.
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