It might be of some concern to shareholders to see the Arcimoto, Inc. (NASDAQ:FUV) share price down 28% in the last month. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In fact, it is up 888% in that time. Arguably, the recent fall is to be expected after such a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price.
Anyone who held for that rewarding ride would probably be keen to talk about it.
Given that Arcimoto didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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 year Arcimoto saw its revenue grow by 4,240%. That's stonking growth even when compared to other loss-making stocks. But the share price has really rocketed in response gaining 888% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think Arcimoto will earn in the future (free profit forecasts).
A Different Perspective
Pleasingly, Arcimoto's total shareholder return last year was 888%. So this year's TSR was actually better than the three-year TSR (annualized) of 77%. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand Arcimoto better, we need to consider many other factors. For example, we've discovered 5 warning signs for Arcimoto (1 is a bit unpleasant!) that you should be aware of before investing here.
We will like Arcimoto 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 US 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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