Shareholders in iSun (NASDAQ:ISUN) have lost 75%, as stock drops 12% this past week
It's not a secret that every investor will make bad investments, from time to time. But it should be a priority to avoid stomach churning catastrophes, wherever possible. So spare a thought for the long term shareholders of iSun, Inc. (NASDAQ:ISUN); the share price is down a whopping 75% in the last twelve months. That'd be a striking reminder about the importance of diversification. We wouldn't rush to judgement on iSun because we don't have a long term history to look at. The falls have accelerated recently, with the share price down 39% in the last three months.
After losing 12% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
View our latest analysis for iSun
iSun 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
iSun grew its revenue by 53% over the last year. That's well above most other pre-profit companies. So the hefty 75% share price crash makes us think the company has somehow offended market participants. Something weird is definitely impacting the stock price; we'd venture the company has destroyed value somehow. What is clear is that the market is not judging the company on its revenue growth right now. Of course, investors do over-react when they are stressed out, so the sell-off could be unjustifiably severe.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on iSun's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
While iSun shareholders are down 75% for the year, the market itself is up 6.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The share price decline has continued throughout the most recent three months, down 39%, 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 iSun better, we need to consider many other factors. Take risks, for example - iSun has 3 warning signs (and 1 which is potentially serious) we think you should know about.
Of course iSun may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.
