Investing in stocks comes with the risk that the share price will fall. And unfortunately for Tritium DCFC Limited (NASDAQ:DCFC) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 62% in that time. Tritium DCFC may have better days ahead, of course; we've only looked at a one year period. Even worse, it's down 48% in about a month, which isn't fun at all. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
Check out our latest analysis for Tritium DCFC
Tritium DCFC wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong 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.
In the last year Tritium DCFC saw its revenue grow by 53%. That's well above most other pre-profit companies. In contrast the share price is down 62% over twelve months. Yes, the market can be a fickle mistress. Typically a growth stock like this will be volatile, with some shareholders concerned about the red ink on the bottom line (that is, the losses). 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).
Take a more thorough look at Tritium DCFC's financial health with this free report on its balance sheet.
A Different Perspective
Tritium DCFC shareholders are down 62% for the year, even worse than the market loss of 22%. 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 45%, 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. To that end, you should learn about the 2 warning signs we've spotted with Tritium DCFC (including 1 which is a bit concerning) .