In This Article:
It's easy to match the overall market return by buying an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. That downside risk was realized by Trustpilot Group plc (LON:TRST) shareholders over the last year, as the share price declined 45%. That's well below the market return of 6.3%. Trustpilot Group may have better days ahead, of course; we've only looked at a one year period. The share price has dropped 48% in three months. This could be related to the recent financial results - you can catch up on the most recent data by reading our company report.
The recent uptick of 6.5% could be a positive sign of things to come, so let's take a lot at historical fundamentals.
View our latest analysis for Trustpilot Group
Given that Trustpilot Group 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Trustpilot Group grew its revenue by 29% over the last year. That's definitely a respectable growth rate. Meanwhile, the share price is down 45% over twelve months, which is disappointing given the progress made. This implies the market was expecting better growth. However, that's in the past now, and it's the future that matters most.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
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
Given that the market gained 6.3% in the last year, Trustpilot Group shareholders might be miffed that they lost 45%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's worth noting that the last three months did the real damage, with a 48% decline. So it seems like some holders have been dumping the stock of late - and that's not bullish. It's always interesting to track share price performance over the longer term. But to understand Trustpilot Group better, we need to consider many other factors. For instance, we've identified 2 warning signs for Trustpilot Group that you should be aware of.
Of course Trustpilot Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.