Clean Seas Seafood (ASX: CSS) share prices have fallen 47% in past three years
Many investors define a successful investment as exceeding the market average over the long term. But in any portfolio, it is likely that some stocks do not match that benchmark. We regret to report this long term Clean Seas Seafood Limited Shareholders (ASX: CSS) had this experience, with the share price falling 47% in three years, against a market return of around 32%. The falls have accelerated recently, with the stock price falling 32% in the past three months.
Check out our latest analysis for Clean Seas Seafood
Given that Clean Seas Seafood has been at a loss over the past twelve months, we believe the market is likely more focused on revenue and revenue growth, at least for now. When a business is not making a profit, one generally expects good revenue growth. Indeed, rapid income growth can be easily extrapolated to forecast profits, often of considerable size.
Over the past three years, Clean Seas Seafood has seen its sales increase by 0.1% per year, compound. Considering that it loses money in pursuit of growth, that doesn’t really impress us. The stock fell 14% during this time. If income growth picks up, we could see the stock price rebound. But the real benefit to shareholders will be if the company can begin to generate profits.
You can see how revenue and income have evolved over time in the image below (click on the graph to see the exact values).
You can see how his track record has strengthened (or weakened) over time in this free interactive graphics.
A different perspective
Investors in Clean Seas Seafood had a difficult year, with a total loss of 11%, compared to a market gain of around 37%. Even good stock prices sometimes go down, but we want to see improvements in the fundamentals of a company, before we get too interested in it. Sadly, last year’s performance may indicate unresolved challenges, given it was worse than the 5% annualized loss over the past half-decade. We realize that Baron Rothschild has said that investors should “buy when there is blood on the streets”, but we caution that investors must first make sure they are buying a high quality business. It is always interesting to follow the evolution of stock prices over the long term. But to better understand Clean Seas Seafood, there are many other factors that we need to consider. For example, we discovered 4 warning signs for Clean Seas Seafood (1 cannot be ignored!) Which you should be aware of before investing here.
If you would rather consult with another company – one with potentially superior finances – then don’t miss this free list of companies that have proven they can increase their profits.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on AU stock exchanges.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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