The main aim of stock picking is to find the market-beating stocks. But even the best stock picker will only win with some selections. So we wouldn't blame long term Ur-Energy Inc. (TSE:URE) shareholders for doubting their decision to hold, with the stock down 41% over a half decade. And we doubt long term believers are the only worried holders, since the stock price has declined 22% over the last twelve months. Shareholders have had an even rougher run lately, with the share price down 33% in the last 90 days. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
Because Ur-Energy is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.
Over half a decade Ur-Energy reduced its trailing twelve month revenue by 5.2% for each year. That's not what investors generally want to see. The stock hasn't done well for shareholders in the last five years, falling 9.9%, annualized. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. It might be worth watching for signs of a turnaround - buyers are probably expecting one.
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 Ur-Energy's financial health with this free report on its balance sheet.
A Different Perspective
We regret to report that Ur-Energy shareholders are down 22% for the year. Unfortunately, that's worse than the broader market decline of 0.4%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 9.9% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Before spending more time on Ur-Energy it might be wise to click here to see if insiders have been buying or selling shares.
Of course Ur-Energy 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.
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 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.