Shareholders in dentalcorp Holdings (TSE:DNTL) are in the red if they invested a year ago
The nature of investing is that you win some, and you lose some. And unfortunately for dentalcorp Holdings Ltd. (TSE:DNTL) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 57% in that time. Because dentalcorp Holdings hasn't been listed for many years, the market is still learning about how the business performs. The falls have accelerated recently, with the share price down 33% in the last three months.
It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.
View our latest analysis for dentalcorp Holdings
Given that dentalcorp Holdings 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
dentalcorp Holdings grew its revenue by 20% over the last year. We think that is pretty nice growth. Unfortunately it seems investors wanted more, because the share price is down 57% in that time. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling dentalcorp Holdings stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
We doubt dentalcorp Holdings shareholders are happy with the loss of 57% over twelve months. That falls short of the market, which lost 5.0%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 33% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - dentalcorp Holdings has 1 warning sign we think you should be aware of.
dentalcorp Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.
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