SDX Energy's (LON:SDX) Stock Price Has Reduced 63% In The Past Three Years

SDX Energy plc (LON:SDX) shareholders should be happy to see the share price up 18% in the last quarter. But that is small recompense for the exasperating returns over three years. Tragically, the share price declined 63% in that time. So it's good to see it climbing back up. While many would remain nervous, there could be further gains if the business can put its best foot forward.

See our latest analysis for SDX Energy

Because SDX Energy 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years, SDX Energy saw its revenue grow by 17% per year, compound. That's a pretty good rate of top-line growth. That contrasts with the weak share price, which has fallen 18% compounded, over three years. 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.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on SDX Energy's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

SDX Energy shareholders are down 21% for the year, falling short of the market return. Meanwhile, the broader market slid about 4.1%, likely weighing on the stock. However, the loss over the last year isn't as bad as the 18% per annum loss investors have suffered over the last 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for SDX Energy (of which 1 can't be ignored!) you should know about.

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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