It is a pleasure to report that the Offerpad Solutions Inc. (NYSE:OPAD) is up 66% in the last quarter. But that's not enough to compensate for the decline over the last twelve months. During that time the share price has sank like a stone, descending 59%. The share price recovery is not so impressive when you consider the fall. It may be that the fall was an overreaction.
The recent uptick of 13% could be a positive sign of things to come, so let's take a look at historical fundamentals.
See our latest analysis for Offerpad Solutions
Given that Offerpad Solutions 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 expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last year Offerpad Solutions saw its revenue grow by 0.9%. That's not a very high growth rate considering it doesn't make profits. It's likely this muted growth has contributed to the share price decline of 59% in the last year. Like many holders, we really want to see better revenue growth in companies that lose money. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for a fundamental improvements before buying, but now could be a good time for some research.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
While Offerpad Solutions shareholders are down 59% for the year, the market itself is up 17%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 66% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Offerpad Solutions (of which 1 is a bit concerning!) you should know about.