Even the best stock pickers will make plenty of bad investments. And there's no doubt that SHL Telemedicine Ltd. (VTX:SHLTN) stock has had a really bad year. The share price is down a hefty 52% in that time. At least the damage isn't so bad if you look at the last three years, since the stock is down 3.7% in that time. Even worse, it's down 19% in about a month, which isn't fun at all.
Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.
View our latest analysis for SHL Telemedicine
SHL Telemedicine isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
SHL Telemedicine's revenue didn't grow at all in the last year. In fact, it fell 3.9%. That looks pretty grim, at a glance. The share price drop of 52% is understandable given the company doesn't have profits to boast of. Fingers crossed this is the low ebb for the stock. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
We regret to report that SHL Telemedicine shareholders are down 52% for the year. Unfortunately, that's worse than the broader market decline of 0.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. To that end, you should learn about the 3 warning signs we've spotted with SHL Telemedicine (including 2 which are a bit unpleasant) .