Akastor's (OB:AKAST) Shareholders Are Down 56% On Their Shares

If you love investing in stocks you're bound to buy some losers. But the long term shareholders of Akastor ASA (OB:AKAST) have had an unfortunate run in the last three years. Regrettably, they have had to cope with a 56% drop in the share price over that period. And the share price decline continued over the last week, dropping some 8.4%.

View our latest analysis for Akastor

Akastor wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last three years, Akastor saw its revenue grow by 12% per year, compound. That's a fairly respectable growth rate. That contrasts with the weak share price, which has fallen 16% 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.

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

If you are thinking of buying or selling Akastor stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Akastor provided a TSR of 17% over the last twelve months. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 0.8% endured over half a decade. So this might be a sign the business has turned its fortunes around. Before spending more time on Akastor it might be wise to click here to see if insiders have been buying or selling shares.

We will like Akastor 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 NO 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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