Jadestone Energy (LON:JSE shareholders incur further losses as stock declines 13% this week, taking three-year losses to 56%

If you love investing in stocks you're bound to buy some losers. But the long term shareholders of Jadestone Energy plc (LON:JSE) have had an unfortunate run in the last three years. Sadly for them, the share price is down 58% in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 57% lower in that time. Even worse, it's down 14% in about a month, which isn't fun at all.

Since Jadestone Energy has shed UK£25m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for Jadestone Energy

Jadestone Energy isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, Jadestone Energy saw its revenue grow by 17% per year, compound. That's a pretty good rate of top-line growth. So some shareholders would be frustrated with the compound loss of 16% per year. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

While the broader market lost about 2.8% in the twelve months, Jadestone Energy shareholders did even worse, losing 57%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 4% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. For example, we've discovered 2 warning signs for Jadestone Energy that you should be aware of before investing here.

Jadestone Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

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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.