Even after rising 11% this past week, Odyssey Marine Exploration (NASDAQ:OMEX) shareholders are still down 42% over the past year

While it may not be enough for some shareholders, we think it is good to see the Odyssey Marine Exploration, Inc. (NASDAQ:OMEX) share price up 15% in a single quarter. But in truth the last year hasn't been good for the share price. After all, the share price is down 42% in the last year, significantly under-performing the market.

Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.

Our analysis indicates that OMEX is potentially undervalued!

Odyssey Marine Exploration 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last twelve months, Odyssey Marine Exploration increased its revenue by 34%. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 42%. You might even wonder if the share price was previously over-hyped. But if revenue keeps growing, then at a certain point the share price would likely follow.

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 Odyssey Marine Exploration's financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that Odyssey Marine Exploration shareholders are down 42% for the year. Unfortunately, that's worse than the broader market decline of 18%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 3% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 6 warning signs for Odyssey Marine Exploration (3 can't be ignored!) that you should be aware of before investing here.

But note: Odyssey Marine Exploration may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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. 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.