While shareholders of Kura Sushi USA (NASDAQ:KRUS) are in the black over 1 year, those who bought a week ago aren't so fortunate
Kura Sushi USA, Inc. (NASDAQ:KRUS) shareholders might be concerned after seeing the share price drop 23% in the last week. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Like an eagle, the share price soared 181% in that time. So it is important to view the recent reduction in price through that lense. More important, going forward, is how the business itself is going.
Since the long term performance has been good but there's been a recent pullback of 23%, let's check if the fundamentals match the share price.
Check out our latest analysis for Kura Sushi USA
Because Kura Sushi USA 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Kura Sushi USA grew its revenue by 130% last year. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 181% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. If you are thinking of buying or selling Kura Sushi USA stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
Kura Sushi USA boasts a total shareholder return of 181% for the last year. The more recent returns haven't been as impressive as the longer term returns, coming in at just 28%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). 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. For instance, we've identified 2 warning signs for Kura Sushi USA that you should be aware of.
We will like Kura Sushi USA better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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.
