Stock Analysis

The one-year returns have been impressive for cyan (ETR:CYR) shareholders despite underlying losses increasing

XTRA:CYR
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the cyan AG (ETR:CYR) share price has soared 102% return in just a single year. It's up an even more impressive 163% over the last quarter. Zooming out, the stock is actually down 78% in the last three years.

Since it's been a strong week for cyan shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for cyan

Because cyan made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year cyan saw its revenue shrink by 9.2%. So we would not have expected the share price to rise 102%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
XTRA:CYR Earnings and Revenue Growth March 22nd 2024

Take a more thorough look at cyan's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that cyan shareholders have received a total shareholder return of 102% over one year. There's no doubt those recent returns are much better than the TSR loss of 14% per year over five years. 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 cyan better, we need to consider many other factors. For instance, we've identified 4 warning signs for cyan (1 is significant) that you should be aware of.

We will like cyan 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 German exchanges.

Valuation is complex, but we're here to simplify it.

Discover if cyan might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.