U.S. Markets closed

Volatility 101: Should SI-BONE (NASDAQ:SIBN) Shares Have Dropped 19%?

Simply Wall St

It's easy to match the overall market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. For example, the SI-BONE, Inc. (NASDAQ:SIBN) share price is down 19% in the last year. That contrasts poorly with the market return of 7.7%. SI-BONE hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. In the last ninety days we've seen the share price slide 20%.

View our latest analysis for SI-BONE

SI-BONE isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

In the last twelve months, SI-BONE increased its revenue by 16%. We think that is pretty nice growth. Meanwhile, the share price is down 19% over twelve months, which is disappointing given the progress made. You might even wonder if the share price was previously over-hyped. However, that's in the past now, and it's the future that matters most.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

NasdaqGM:SIBN Income Statement, October 16th 2019

Take a more thorough look at SI-BONE's financial health with this free report on its balance sheet.

A Different Perspective

Given that the market gained 7.7% in the last year, SI-BONE shareholders might be miffed that they lost 19%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's worth noting that the last three months did the real damage, with a 20% decline. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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.

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. Thank you for reading.