Dialight (LON:DIA) Share Prices Have Dropped 58% In The Last Three Years

If you love investing in stocks you're bound to buy some losers. But long term Dialight plc (LON:DIA) shareholders have had a particularly rough ride in the last three year. Sadly for them, the share price is down 58% in that time. Unfortunately the share price momentum is still quite negative, with prices down 15% in thirty days.

Check out our latest analysis for Dialight

Dialight isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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 three years Dialight saw its revenue shrink by 10% per year. That is not a good result. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 17% per year. Having said that, if growth is coming in the future, now may be the low ebb for the company. We'd be pretty wary of this one until it makes a profit, because we don't specialize in finding turnaround situations.

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

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

A Different Perspective

We're pleased to report that Dialight shareholders have received a total shareholder return of 8.3% over one year. There's no doubt those recent returns are much better than the TSR loss of 8% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Dialight better, we need to consider many other factors. For instance, we've identified 1 warning sign for Dialight that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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