Green Organic Dutchman Holdings' (TSE:TGOD) Stock Price Has Reduced 65% In The Past Year

By
Simply Wall St
Published
December 16, 2020
TSX:TGOD

Taking the occasional loss comes part and parcel with investing on the stock market. And there's no doubt that The Green Organic Dutchman Holdings Ltd. (TSE:TGOD) stock has had a really bad year. To wit the share price is down 65% in that time. Green Organic Dutchman Holdings may have better days ahead, of course; we've only looked at a one year period. The falls have accelerated recently, with the share price down 27% in the last three months.

See our latest analysis for Green Organic Dutchman Holdings

Green Organic Dutchman Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 Green Organic Dutchman Holdings saw its revenue grow by 58%. That's a strong result which is better than most other loss making companies. In contrast the share price is down 65% 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). 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 company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
TSX:TGOD Earnings and Revenue Growth December 16th 2020

Take a more thorough look at Green Organic Dutchman Holdings' financial health with this free report on its balance sheet.

A Different Perspective

While Green Organic Dutchman Holdings shareholders are down 65% for the year, the market itself is up 4.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 27% over the last three months, the market doesn't seem to believe that the company has solved all its problems. 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 Green Organic Dutchman Holdings better, we need to consider many other factors. Even so, be aware that Green Organic Dutchman Holdings is showing 5 warning signs in our investment analysis , and 2 of those make us uncomfortable...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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