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How Much Did Green Organic Dutchman Holdings'(TSE:TGOD) Shareholders Earn From Share Price Movements Over The Last Year?

Simply Wall St
·3 mins read

As every investor would know, you don't hit a homerun every time you swing. But it's not unreasonable to try to avoid truly shocking capital losses. So we hope that those who held The Green Organic Dutchman Holdings Ltd. (TSE:TGOD) during the last year don't lose the lesson, in addition to the 87% hit to the value of their shares. That'd be enough to make even the strongest stomachs churn. We wouldn't rush to judgement on Green Organic Dutchman Holdings because we don't have a long term history to look at. Even worse, it's down 15% in about a month, which isn't fun at all.

While a drop like that is definitely a body blow, money isn't as important as health and happiness.

See our latest analysis for Green Organic Dutchman Holdings

Given that Green Organic Dutchman 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. 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.

In the last twelve months, Green Organic Dutchman Holdings increased its revenue by 80%. That's a strong result which is better than most other loss making companies. So on the face of it we're really surprised to see the share price down 87% over twelve months. There's clearly something unusual going on here such as an acquisition that hasn't delivered expected profits. What is clear is that the market is not judging the company on its revenue growth right now. Of course, markets do over-react so share price drop may be too harsh.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

This free interactive report on Green Organic Dutchman Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Green Organic Dutchman Holdings shareholders are down 87% for the year, even worse than the market loss of 3.7%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 7.9%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Green Organic Dutchman Holdings better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Green Organic Dutchman Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.

But note: Green Organic Dutchman Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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