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This week we saw the CollPlant Biotechnologies Ltd. (NASDAQ:CLGN) share price climb by 10%. But the last three years have seen a terrible decline. In that time the share price has melted like a snowball in the desert, down 71%. So it's about time shareholders saw some gains. Only time will tell if the company can sustain the turnaround.
The recent uptick of 10% could be a positive sign of things to come, so let's take a look at historical fundamentals.
See our latest analysis for CollPlant Biotechnologies
CollPlant Biotechnologies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.
In the last three years CollPlant Biotechnologies saw its revenue shrink by 33% per year. That means its revenue trend is very weak compared to other loss making companies. And as you might expect the share price has been weak too, dropping at a rate of 20% per year. Never forget that loss making companies with falling revenue can and do cause losses for everyday investors. It's worth remembering that investors call buying a steeply falling share price 'catching a falling knife' because it is a dangerous pass time.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at CollPlant Biotechnologies' financial health with this free report on its balance sheet.
A Different Perspective
While the broader market gained around 28% in the last year, CollPlant Biotechnologies shareholders lost 21%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 3%, each year, over five years. 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 CollPlant Biotechnologies better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for CollPlant Biotechnologies you should be aware of.