Lite Access Technologies Inc. (CVE:LTE) shareholders will doubtless be very grateful to see the share price up 33% in the last month. But that is meagre solace in the face of the shocking decline over three years. In that time the share price has melted like a snowball in the desert, down 84%. So we’re relieved for long term holders to see a bit of uplift. Of course the real question is whether the business can sustain a turnaround.
We really feel for shareholders in this scenario. It’s a good reminder of the importance of diversification, and it’s worth keeping in mind there’s more to life than money, anyway.
Check out our latest analysis for Lite Access Technologies
Given that Lite Access Technologies 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over three years, Lite Access Technologies grew revenue at 7.7% per year. That’s not a very high growth rate considering it doesn’t make profits. But the share price crash at 46% per year does seem a bit harsh! We generally don’t try to ‘catch the falling knife’. Before considering a purchase, take a look at the losses the company is racking up.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
TSXV:LTE Income Statement April 29th 2020
This free interactive report on Lite Access Technologies’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Pleasingly, Lite Access Technologies’s total shareholder return last year was 33%. That certainly beats the loss of about 46% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. 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. Like risks, for instance. Every company has them, and we’ve spotted 5 warning signs for Lite Access Technologies (of which 1 is a bit unpleasant!) you should know about.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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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