The ExOne Company (NASDAQ:XONE) shareholders might be concerned after seeing the share price drop 23% in the last month. But that doesn't change the fact that the returns over the last year have been very strong. Indeed, the share price is up an impressive 249% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.
ExOne 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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.
Over the last twelve months, ExOne's revenue grew by 11%. That's not great considering the company is losing money. In contrast, the share price took off during the year, gaining 249%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling ExOne stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that ExOne shareholders have received a total shareholder return of 249% over one year. That gain is better than the annual TSR over five years, which is 12%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - ExOne has 3 warning signs we think you should be aware of.
But note: ExOne 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 US 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.
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