Strong week for Ichor Holdings (NASDAQ:ICHR) shareholders doesn't alleviate pain of one-year loss

This week we saw the Ichor Holdings, Ltd. (NASDAQ:ICHR) share price climb by 14%. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 48% in the last year, well below the market return.

The recent uptick of 14% could be a positive sign of things to come, so let's take a look at historical fundamentals.

Our free stock report includes 2 warning signs investors should be aware of before investing in Ichor Holdings. Read for free now.

Ichor Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Ichor Holdings grew its revenue by 4.4% over the last year. That's not a very high growth rate considering it doesn't make profits. Given this lacklustre revenue growth, the share price drop of 48% seems pretty appropriate. In a hot market it's easy to forget growth is the life-blood of a loss making company. So remember, if you buy a profitless company then you risk being a profitless investor.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Ichor Holdings' financial health with this free report on its balance sheet.

A Different Perspective

While the broader market gained around 7.4% in the last year, Ichor Holdings shareholders lost 48%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5% 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. It's always interesting to track share price performance over the longer term. But to understand Ichor Holdings better, we need to consider many other factors. Take risks, for example - Ichor Holdings has 2 warning signs we think you should be aware of.

Of course Ichor Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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