Even the best stock pickers will make plenty of bad investments. And there's no doubt that AgileThought, Inc. (NASDAQ:AGIL) stock has had a really bad year. The share price is down a hefty 53% in that time. AgileThought hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time.
So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for AgileThought
AgileThought isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
AgileThought's revenue didn't grow at all in the last year. In fact, it fell 3.2%. That looks pretty grim, at a glance. The share price drop of 53% is understandable given the company doesn't have profits to boast of. Fingers crossed this is the low ebb for the stock. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
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 probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
AgileThought shareholders are down 53% for the year, even worse than the market loss of 7.6%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 5.2%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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 - AgileThought has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
We will like AgileThought better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.