Some Bango plc (LON:BGO) shareholders are probably rather concerned to see the share price fall 32% over the last three months. On the bright side the share price is up over the last half decade. In that time, it is up 13%, which isn’t bad, but is below the market return of 20%.
Check out our latest analysis for Bango
Given that Bango 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.
For the last half decade, Bango can boast revenue growth at a rate of 12% per year. That’s a fairly respectable growth rate. Revenue has been growing at a reasonable clip, so it’s debatable whether the share price growth of 2.6% full reflects the underlying business growth. If revenue growth can maintain for long enough, it’s likely profits will flow. Lack of earnings means you have to project further into the future justify the valuation on the basis of future free cash flow.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
AIM:BGO Income Statement, March 2nd 2020
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
While the broader market gained around 0.2% in the last year, Bango shareholders lost 4.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 2.6% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It’s always interesting to track share price performance over the longer term. But to understand Bango better, we need to consider many other factors. For example, we’ve discovered 5 warning signs for Bango that you should be aware of before investing here.
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 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.
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