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Condor Energies Inc. (TSE:CDR) shareholders might be concerned after seeing the share price drop 23% in the last month. In contrast, the return over three years has been impressive. The share price marched upwards over that time, and is now 268% higher than it was. To some, the recent share price pullback wouldn't be surprising after such a good run. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
View our latest analysis for Condor Energies
Given that Condor Energies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good 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.
Over the last three years Condor Energies has grown its revenue at 119% annually. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 54% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say Condor Energies is still worth investigating - successful businesses can often keep growing for long periods.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. You can see what analysts are predicting for Condor Energies in this interactive graph of future profit estimates.
A Different Perspective
It's nice to see that Condor Energies shareholders have received a total shareholder return of 37% over the last year. That's better than the annualised return of 22% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Condor Energies , and understanding them should be part of your investment process.