If You Had Bought GreenPower Motor (CVE:GPV) Stock Three Years Ago, You'd Be Sitting On A 68% Loss, Today

If you love investing in stocks you're bound to buy some losers. Long term GreenPower Motor Company Inc. (CVE:GPV) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 68% drop in the share price over that period. And more recent buyers are having a tough time too, with a drop of 38% in the last year. Furthermore, it's down 46% in about a quarter. That's not much fun for holders.

Check out our latest analysis for GreenPower Motor

GreenPower Motor isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years, GreenPower Motor saw its revenue grow by 93% per year, compound. That is faster than most pre-profit companies. The share price has moved in quite the opposite direction, down 32% over that time, a bad result. It seems likely that the market is worried about the continual losses. When we see revenue growth, paired with a falling share price, we can't help wonder if there is an opportunity for those who are willing to dig deeper.

The company's revenue and earnings (over time) are depicted in the image below.

If you are thinking of buying or selling GreenPower Motor stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

The last twelve months weren't great for GreenPower Motor shares, which cost holders 38%, while the market was up about 14%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Shareholders have lost 32% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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