Reflecting on Trilogy International Partners' (TSE:TRL) Share Price Returns Over The Last Three Years

By
Simply Wall St
Published
February 24, 2021
TSX:TRL

While it may not be enough for some shareholders, we think it is good to see the Trilogy International Partners Inc. (TSE:TRL) share price up 22% in a single quarter. But that doesn't change the fact that the returns over the last three years have been stomach churning. To wit, the share price sky-dived 72% in that time. So it sure is nice to see a bit of an improvement. The thing to think about is whether the business has really turned around.

Check out our latest analysis for Trilogy International Partners

Given that Trilogy International Partners didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 Trilogy International Partners saw its revenue shrink by 8.6% per year. That is not a good result. Having said that the 20% annualized share price decline highlights the risk of investing in unprofitable companies. We're generally averse to companies with declining revenues, but we're not alone in that. Don't let a share price decline ruin your calm. You make better decisions when you're calm.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
TSX:TRL Earnings and Revenue Growth February 24th 2021

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think Trilogy International Partners will earn in the future (free profit forecasts).

A Different Perspective

Trilogy International Partners shareholders are down 3.7% for the year, but the broader market is up 12%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, the longer term story isn't pretty, with investment losses running at 20% per year over three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Trilogy International Partners is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

Trilogy International Partners is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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