Autins Group plc (LON:AUTG) shareholders should be happy to see the share price up 29% in the last month. But that doesn’t change the fact that the returns over the last three years have been stomach churning. The share price has sunk like a leaky ship, down 92% in that time. So we’re relieved for long term holders to see a bit of uplift. Only time will tell if the company can sustain the turnaround.
While a drop like that is definitely a body blow, money isn’t as important as health and happiness.
See our latest analysis for Autins Group
Given that Autins Group didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last three years, Autins Group saw its revenue grow by 9.0% per year, compound. That’s a pretty good rate of top-line growth. So it seems unlikely the 57% share price drop (each year) is entirely about the revenue. More likely, the market was spooked by the cost of that revenue. If you buy into companies that lose money then you always risk losing money yourself. Just don’t lose the lesson.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Autins Group shareholders are down 67% for the year, falling short of the market return. The market shed around 16%, no doubt weighing on the stock price. The three-year loss of 57% per year isn’t as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Baron Rothschild famously said to “buy when there’s blood in the streets, even if the blood is your own”, he also focusses on high quality stocks with solid prospects. It’s always interesting to track share price performance over the longer term. But to understand Autins Group better, we need to consider many other factors. Take risks, for example – Autins Group has 5 warning signs (and 2 which are a bit unpleasant) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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 [email protected] 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.
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