The Toople (LON:TOOP) Share Price Is Down 97% So Some Shareholders Are Very Salty

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This week we saw the Toople Plc (LON:TOOP) share price climb by 14%. But the last three years have seen a terrible decline. To wit, the share price sky-dived 97% in that time. So it's about time shareholders saw some gains. Of course the real question is whether the business can sustain a turnaround.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

Check out our latest analysis for Toople

Toople isn't a profitable company, so 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. Shareholders of unprofitable companies usually expect strong 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.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

LSE:TOOP Income Statement, December 9th 2019
LSE:TOOP Income Statement, December 9th 2019

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Dive deeper into the earnings by checking this interactive graph of Toople's earnings, revenue and cash flow.

A Different Perspective

Over the last year, Toople shareholders took a loss of 47%. In contrast the market gained about 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, the longer term story isn't pretty, with investment losses running at 68% per year over three years. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. You could get a better understanding of Toople's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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 GB exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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