Odysight.ai (NASDAQ:ODYS shareholders incur further losses as stock declines 11% this week, taking one-year losses to 62%
Taking the occasional loss comes part and parcel with investing on the stock market. Unfortunately, shareholders of Odysight.ai Inc. (NASDAQ:ODYS) have suffered share price declines over the last year. To wit the share price is down 62% in that time. To make matters worse, the returns over three years have also been really disappointing (the share price is 39% lower than three years ago). Shareholders have had an even rougher run lately, with the share price down 24% in the last 90 days.
After losing 11% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
Because Odysight.ai made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In just one year Odysight.ai saw its revenue fall by 16%. That's not what investors generally want to see. In the absence of profits, it's not unreasonable that the share price fell 62%. Having said that, if growth is coming in the future, the stock may have better days ahead. We have a natural aversion to companies that are losing money and shrinking revenue. But perhaps that is being too careful.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Investors in Odysight.ai had a tough year, with a total loss of 62%, against a market gain of about 14%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8% over the last half decade. 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Odysight.ai is showing 4 warning signs in our investment analysis , and 1 of those is concerning...
We will like Odysight.ai better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) 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 American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.