While not a mind-blowing move, it is good to see that the Nayuki Holdings Limited (HKG:2150) share price has gained 17% in the last three months. But that's small comfort given the dismal price performance over the last year. Specifically, the stock price slipped by 51% in that time. The share price recovery is not so impressive when you consider the fall. Arguably, the fall was overdone.

If the past week is anything to go by, investor sentiment for Nayuki Holdings isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Nayuki Holdings

Nayuki Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last twelve months, Nayuki Holdings increased its revenue by 41%. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 51% in that time. It is of course possible that the business will still deliver strong growth, it will just take longer than expected to do it. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Nayuki Holdings is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. You can see what analysts are predicting for Nayuki Holdings in this interactive graph of future profit estimates.

A Different Perspective

Nayuki Holdings shareholders are down 51% for the year, even worse than the market loss of 15%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 17%, in the last ninety days. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

We will like Nayuki Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies 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 HK exchanges.

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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.