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The Barfresh Food Group, Inc. (NASDAQ:BRFH) share price has had a bad week, falling 13%. But that doesn't detract from the splendid returns of the last year. We're very pleased to report the share price shot up 216% in that time. So some might not be surprised to see the price retrace some. Only time will tell if there is still too much optimism currently reflected in the share price.
In light of the stock dropping 13% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.
See our latest analysis for Barfresh Food Group
Barfresh Food Group 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 desire 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.
Over the last twelve months, Barfresh Food Group's revenue grew by 29%. We respect that sort of growth, no doubt. While that revenue growth is pretty good the share price performance outshone it, with a lift of 216% as mentioned above. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.
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 probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free report showing analyst forecasts should help you form a view on Barfresh Food Group
A Different Perspective
We're pleased to report that Barfresh Food Group shareholders have received a total shareholder return of 216% over one year. Notably the five-year annualised TSR loss of 0.7% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Barfresh Food Group better, we need to consider many other factors. Even so, be aware that Barfresh Food Group is showing 3 warning signs in our investment analysis , you should know about...