Even the best stock pickers will make plenty of bad investments. And there's no doubt that Camplify Holdings Limited (ASX:CHL) stock has had a really bad year. In that relatively short period, the share price has plunged 60%. Camplify Holdings hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. More recently, the share price has dropped a further 21% in a month.
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.
View our latest analysis for Camplify Holdings
Given that Camplify Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last twelve months, Camplify Holdings increased its revenue by 93%. That's well above most other pre-profit companies. In contrast the share price is down 60% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. We'd definitely consider it a positive if the company is trending towards profitability. If you can see that happening, then perhaps consider adding this stock to your watchlist.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. You can see what analysts are predicting for Camplify Holdings in this interactive graph of future profit estimates.
A Different Perspective
Camplify Holdings shareholders are down 60% for the year, even worse than the market loss of 3.4%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 9.2%, 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. It's always interesting to track share price performance over the longer term. But to understand Camplify Holdings better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Camplify Holdings (including 1 which doesn't sit too well with us) .