Stock Analysis

Nanoform Finland Oyj (HEL:NANOFH investor one-year losses grow to 64% as the stock sheds €22m this past week

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HLSE:NANOFH
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Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Nanoform Finland Oyj (HEL:NANOFH) have suffered share price declines over the last year. To wit the share price is down 64% in that time. We wouldn't rush to judgement on Nanoform Finland Oyj because we don't have a long term history to look at. Shareholders have had an even rougher run lately, with the share price down 44% in the last 90 days.

If the past week is anything to go by, investor sentiment for Nanoform Finland Oyj isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Nanoform Finland Oyj

Nanoform Finland Oyj 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.

Nanoform Finland Oyj grew its revenue by 114% over the last year. That's a strong result which is better than most other loss making companies. In contrast the share price is down 64% 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.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
HLSE:NANOFH Earnings and Revenue Growth March 16th 2023

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Nanoform Finland Oyj shareholders are down 64% for the year, even worse than the market loss of 5.8%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. With the stock down 44% 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 Nanoform Finland Oyj better, we need to consider many other factors. For instance, we've identified 3 warning signs for Nanoform Finland Oyj that you should be aware of.

Of course Nanoform Finland Oyj may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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Find out whether Nanoform Finland Oyj is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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