U.S. markets closed
  • S&P 500

    3,426.92
    -56.89 (-1.63%)
     
  • Dow 30

    28,195.42
    -410.89 (-1.44%)
     
  • Nasdaq

    11,478.88
    -192.67 (-1.65%)
     
  • Russell 2000

    1,613.63
    -20.18 (-1.24%)
     
  • Crude Oil

    40.64
    -0.19 (-0.47%)
     
  • Gold

    1,905.80
    -5.90 (-0.31%)
     
  • Silver

    24.47
    -0.23 (-0.92%)
     
  • EUR/USD

    1.1773
    0.0000 (-0.00%)
     
  • 10-Yr Bond

    0.7610
    +0.0170 (+2.28%)
     
  • GBP/USD

    1.2949
    +0.0009 (+0.07%)
     
  • USD/JPY

    105.4600
    +0.0300 (+0.03%)
     
  • BTC-USD

    11,727.38
    +670.37 (+6.06%)
     
  • CMC Crypto 200

    239.16
    +5.49 (+2.35%)
     
  • FTSE 100

    5,884.65
    -34.93 (-0.59%)
     
  • Nikkei 225

    23,671.13
    +260.50 (+1.11%)
     

A Look At Genex Power's (ASX:GNX) Share Price Returns

Simply Wall St
·3 mins read

Many investors define successful investing as beating the market average over the long term. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Genex Power Limited (ASX:GNX) shareholders, since the share price is down 32% in the last three years, falling well short of the market return of around 18%. And over the last year the share price fell 22%, so we doubt many shareholders are delighted. Furthermore, it's down 27% in about a quarter. That's not much fun for holders.

View our latest analysis for Genex Power

Genex Power isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at Genex Power's financial health with this free report on its balance sheet.

A Different Perspective

While the broader market lost about 2.3% in the twelve months, Genex Power shareholders did even worse, losing 22%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 1.4%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Genex Power that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.