The last three months have been tough on Radient Technologies Inc. (CVE:RTI) shareholders, who have seen the share price decline a rather worrying 53%. But that doesn’t change the fact that shareholders have received really good returns over the last five years. We think most investors would be happy with the 290% return, over that period. We think it’s more important to dwell on the long term returns than the short term returns. The more important question is whether the stock is too cheap or too expensive today. While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 82% drop, in the last year.
View our latest analysis for Radient Technologies
Given that Radient 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. 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 5 years Radient Technologies saw its revenue grow at 70% per year. Even measured against other revenue-focussed companies, that’s a good result. So it’s not entirely surprising that the share price reflected this performance by increasing at a rate of 31% per year, in that time. This suggests the market has well and truly recognized the progress the business has made. To our minds that makes Radient Technologies worth investigating – it may have its best days ahead.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
TSXV:RTI Income Statement, March 16th 2020
Take a more thorough look at Radient Technologies’s financial health with this free report on its balance sheet.
A Different Perspective
While the broader market lost about 18% in the twelve months, Radient Technologies shareholders did even worse, losing 82%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there’s a good opportunity. Longer term investors wouldn’t be so upset, since they would have made 31%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It’s always interesting to track share price performance over the longer term. But to understand Radient Technologies better, we need to consider many other factors. For instance, we’ve identified 6 warning signs for Radient Technologies (2 are concerning) that you should be aware of.
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 CA 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.