U.S. Markets close in 35 mins
  • S&P 500

    3,665.69
    +3.24 (+0.09%)
     
  • Dow 30

    29,860.24
    +36.32 (+0.12%)
     
  • Nasdaq

    12,340.38
    -14.73 (-0.12%)
     
  • Russell 2000

    1,839.82
    +3.77 (+0.21%)
     
  • Crude Oil

    45.24
    +0.69 (+1.55%)
     
  • Gold

    1,832.80
    +13.90 (+0.76%)
     
  • Silver

    24.17
    +0.08 (+0.35%)
     
  • EUR/USD

    1.2101
    +0.0022 (+0.1815%)
     
  • 10-Yr Bond

    0.9480
    +0.0140 (+1.50%)
     
  • Vix

    20.87
    +0.10 (+0.48%)
     
  • GBP/USD

    1.3359
    -0.0064 (-0.4796%)
     
  • USD/JPY

    104.5190
    +0.2030 (+0.1946%)
     
  • BTC-USD

    19,055.46
    +61.55 (+0.32%)
     
  • CMC Crypto 200

    373.86
    +8.94 (+2.45%)
     
  • FTSE 100

    6,463.39
    +78.66 (+1.23%)
     
  • Nikkei 225

    26,800.98
    +13.44 (+0.05%)
     

How Much Did Gage Roads Brewing's(ASX:GRB) Shareholders Earn From Share Price Movements Over The Last Year?

Simply Wall St
·3 min read

While not a mind-blowing move, it is good to see that the Gage Roads Brewing Co. Limited (ASX:GRB) share price has gained 21% in the last three months. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 36% in the last year, significantly under-performing the market.

See our latest analysis for Gage Roads Brewing

Gage Roads Brewing wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.

In just one year Gage Roads Brewing saw its revenue fall by 6.3%. That's not what investors generally want to see. Shareholders have seen the share price drop 36% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling Gage Roads Brewing stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We regret to report that Gage Roads Brewing shareholders are down 36% for the year. Unfortunately, that's worse than the broader market decline of 2.9%. 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. On the bright side, long term shareholders have made money, with a gain of 0.8% per year over half a decade. 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 instance, we've identified 2 warning signs for Gage Roads Brewing that you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do 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.