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Strong Week for CCC Intelligent Solutions Holdings (NYSE:CCCS) Shareholders Doesn't Alleviate Pain of One-year Loss

Simply Wall St ·  Sep 11, 2022 09:15

It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. Investors in CCC Intelligent Solutions Holdings Inc. (NYSE:CCCS) have tasted that bitter downside in the last year, as the share price dropped 18%. That's disappointing when you consider the market declined 14%. Because CCC Intelligent Solutions Holdings hasn't been listed for many years, the market is still learning about how the business performs.

Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.

Check out our latest analysis for CCC Intelligent Solutions Holdings

CCC Intelligent Solutions 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

CCC Intelligent Solutions Holdings grew its revenue by 15% over the last year. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 18%. You might even wonder if the share price was previously over-hyped. But if revenue keeps growing, then at a certain point the share price would likely follow.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growthNYSE:CCCS Earnings and Revenue Growth September 11th 2022

This free interactive report on CCC Intelligent Solutions Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

CCC Intelligent Solutions Holdings shareholders are down 18% for the year, even worse than the market loss of 14%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 9.3% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand CCC Intelligent Solutions Holdings better, we need to consider many other factors. Even so, be aware that CCC Intelligent Solutions Holdings is showing 1 warning sign in our investment analysis , you should know about...

But note: CCC Intelligent Solutions Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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