The past year for Greenlane Renewables (TSE:GRN) investors has not been profitable
Investing in stocks comes with the risk that the share price will fall. And there's no doubt that Greenlane Renewables Inc. (TSE:GRN) stock has had a really bad year. The share price is down a hefty 53% in that time. At least the damage isn't so bad if you look at the last three years, since the stock is down 1.9% in that time.
It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.
Check out our latest analysis for Greenlane Renewables
Greenlane Renewables isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year Greenlane Renewables saw its revenue grow by 52%. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 53%. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Greenlane Renewables is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for Greenlane Renewables in this interactive graph of future profit estimates.
A Different Perspective
Over the last year, Greenlane Renewables shareholders took a loss of 53%. In contrast the market gained about 0.4%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 0.6% 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 Greenlane Renewables better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Greenlane Renewables .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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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