While kneat.com, inc. (CVE:KSI) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 11% in the last quarter. But in three years the returns have been great. The share price marched upwards over that time, and is now 236% higher than it was. So the recent fall in the share price should be viewed in that context. Only time will tell if there is still too much optimism currently reflected in the share price.
See our latest analysis for kneat.com
Because kneat.com 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 3 years kneat.com saw its revenue grow at 74% per year. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 50% compound over three years. This suggests the market has recognized the progress the business has made, at least to a significant degree. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
TSXV:KSI Earnings and Revenue Growth November 18th