Kraken Robotics Inc. (CVE:PNG) shareholders might be concerned after seeing the share price drop 20% in the last month. But that doesn’t undermine the rather lovely longer-term return, if you measure over the last three years. The share price marched upwards over that time, and is now 167% higher than it was. It’s not uncommon to see a share price retrace a bit, after a big gain. Only time will tell if there is still too much optimism currently reflected in the share price.
Kraken Robotics isn’t a profitable company, so 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years Kraken Robotics saw its revenue grow at 56% per year. That’s well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 39% compound over three years. But it does seem like the market is paying attention to strong revenue growth. That’s not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
This free interactive report on Kraken Robotics’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We’re pleased to report that Kraken Robotics rewarded shareholders with a total shareholder return of 33% over the last year. But the three year TSR of 39% per year is even better. 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.
We will like Kraken Robotics better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.