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The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Aeva Technologies, Inc. (NYSE:AEVA) have suffered share price declines over the last year. The share price has slid 64% in that time. Aeva Technologies hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The falls have accelerated recently, with the share price down 34% in the last three months. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
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 Aeva Technologies
Aeva Technologies isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Aeva Technologies grew its revenue by 91% over the last year. That's a strong result which is better than most other loss making companies. Meanwhile, the share price slid 64%. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?
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. If you are thinking of buying or selling Aeva Technologies stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
Aeva Technologies shareholders are down 64% for the year, even worse than the market loss of 6.7%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 34%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Aeva Technologies is showing 3 warning signs in our investment analysis , you should know about...