Elys Game Technology (NASDAQ:ELYS) shareholders lost 60% as shares fell 12% last week

Elys Game Technology, Corp. (NASDAQ:ELYS) Shareholders should be pleased to see the stock price rise 16% over the past month. But that’s a small comfort given the lackluster price performance over the past year. Specifically, the stock price fell 60% during this period. It’s not so surprising to see a rebound after a fall like that. Of course, it could be that the fall was exaggerated.

Given that the past week has been tough for shareholders, let’s take a look at the fundamentals and see what we can learn.

Check out our latest analysis for Elys Game Technology

Since Elys Game Technology has not made a profit in the past twelve months, we will focus on revenue growth to get a quick overview of its business development. Shareholders of unprofitable companies generally expect strong revenue growth. Indeed, rapid revenue growth can be easily extrapolated to predict profits, often of considerable size.

Elys Game Technology increased its turnover by 32% compared to last year. That’s certainly a respectable growth rate. Meanwhile, the stock price fell 60%, suggesting the market had much higher expectations. It may be that the company remains roughly on track, but its revenue growth has simply been delayed. In our opinion, it is not enough to look only at income, in any case. Always consider when profits will flow.

The company’s revenues and profits (over time) are shown in the image below (click to see exact figures).

NasdaqCM: ELYS earnings and revenue growth February 21, 2022

It is good to see that there has been significant insider buying over the past three months. This is a positive point. That said, we believe earnings and revenue growth trends are even more important factors to consider. You can see what analysts are predicting for Elys Game Technology in this interactive graph of future profit estimates.

A different perspective

While the broader market gained about 1.4% last year, Elys Game Technology shareholders lost 60%. Even good stock prices sometimes drop, but we want to see improvements in a company’s fundamentals before we get too interested. Unfortunately, last year’s performance may indicate unresolved challenges, given that it was worse than the 6% annualized loss over the past half-decade. We realize that Baron Rothschild said investors should “buy when there’s blood in the streets”, but we caution that investors must first make sure they are buying a high quality company. It is always interesting to follow the evolution of the share price over the long term. But to better understand Elys Game Technology, we need to consider many other factors. Consider the risks, for example. Every business has them, and we’ve spotted 3 warning signs for Elys Game Technology you should know.

Elys Game Technology isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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