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Appulse Corporation (CVE:APL) shareholders should be happy to see the share price up 11% in the last month. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 51% in the last year, significantly under-performing the market.
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 Appulse
Appulse recorded just CA$303,965 in revenue over the last twelve months, which isn't really enough for us to consider it to have a proven product. This state of affairs suggests that venture capitalists won't provide funds on attractive terms. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. Investors will be hoping that Appulse can make progress and gain better traction for the business, before it runs low on cash.
Companies that lack both meaningful revenue and profits are usually considered high risk. You should be aware that there is always a chance that this sort of company will need to issue more shares to raise money to continue pursuing its business plan. While some companies like this go on to deliver on their plan, making good money for shareholders, many end in painful losses and eventual de-listing. Some Appulse investors have already had a taste of the bitterness stocks like this can leave in the mouth.
When it last reported its balance sheet in September 2024, Appulse could boast a strong position, with cash in excess of all liabilities of CA$3.3m. This gives management the flexibility to drive business growth, without worrying too much about cash reserves. But with the share price diving 51% in the last year , it could be that the price was previously too hyped up. You can see in the image below, how Appulse's cash levels have changed over time (click to see the values).
Of course, the truth is that it is hard to value companies without much revenue or profit. What if insiders are ditching the stock hand over fist? I would feel more nervous about the company if that were so. You can click here to see if there are insiders selling.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Appulse, it has a TSR of 21% for the last 1 year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!