Introducing Tower One Wireless (CNSX:TO), The Stock That Dropped 47% In The Last Year
While it may not be enough for some shareholders, we think it is good to see the Tower One Wireless Corp. (CNSX:TO) share price up 13% in a single quarter. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 47% in the last year, significantly under-performing the market.
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See our latest analysis for Tower One Wireless
Tower One Wireless isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Tower One Wireless grew its revenue by 676% over the last year. That's well above most other pre-profit companies. The share price drop of 47% over twelve months would be considered disappointing by many, so you might argue the company is getting little credit for its impressive revenue growth. On the bright side, if this company is moving profits in the right direction, top-line growth like that could be an opportunity. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
Balance sheet strength is crucual. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
While Tower One Wireless shareholders are down 47% for the year, the market itself is up 1.0%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 13% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
We will like Tower One Wireless better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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.
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. Thank you for reading.
