Investors in Greenbrook TMS (NASDAQ:GBNH) from three years ago are still down 78%, even after 150% gain this past week
Greenbrook TMS Inc. (NASDAQ:GBNH) shareholders are doubtless heartened to see the share price bounce 150% in just one week. But that doesn't change the fact that the returns over the last three years have been stomach churning. The share price has sunk like a leaky ship, down 78% in that time. So it's about time shareholders saw some gains. Only time will tell if the company can sustain the turnaround.
The recent uptick of 150% could be a positive sign of things to come, so let's take a look at historical fundamentals.
Check out our latest analysis for Greenbrook TMS
Greenbrook TMS isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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, Greenbrook TMS grew revenue at 18% per year. That's a pretty good rate of top-line growth. So it seems unlikely the 21% share price drop (each year) is entirely about the revenue. It could be that the losses were much larger than expected. This is exactly why investors need to diversify - even when a loss making company grows revenue, it can fail to deliver for shareholders.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling Greenbrook TMS stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Greenbrook TMS shareholders are down 67% for the year, falling short of the market return. The market shed around 11%, no doubt weighing on the stock price. Shareholders have lost 21% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. It's always interesting to track share price performance over the longer term. But to understand Greenbrook TMS better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Greenbrook TMS (of which 4 don't sit too well with us!) you should know about.
We will like Greenbrook TMS better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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