Those Who Purchased Next Science (ASX:NXS) Shares A Year Ago Have A 22% Loss To Show For It
Over the last month the Next Science Limited (ASX:NXS) has been much stronger than before, rebounding by 48%. But that is minimal compensation for the share price under-performance over the last year. In fact, the price has declined 22% in a year, falling short of the returns you could get by investing in an index fund.
View our latest analysis for Next Science
Because Next Science made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Next Science saw its revenue grow by 43%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 22%. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
We doubt Next Science shareholders are happy with the loss of 22% over twelve months. That falls short of the market, which lost 14%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's worth noting that the last three months did the real damage, with a 37% decline. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. 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. To that end, you should be aware of the 3 warning signs we've spotted with Next Science .
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.
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