Investors in SOS (NYSE:SOS) from a year ago are still down 79%, even after 72% gain this past week

SOS Limited (NYSE:SOS) shareholders will doubtless be very grateful to see the share price up 134% in the last month. But that doesn't change the fact that the returns over the last year have been stomach churning. To wit, the stock has dropped 79% over the last year. So the rise may not be much consolation. The real question is whether the company can turn around its fortunes.

While the stock has risen 72% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for SOS

Given that SOS 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

SOS grew its revenue by 36% over the last year. We think that is pretty nice growth. Unfortunately, the market wanted something better, given it sent the share price 79% lower during the year. One fear might be that the company might be losing too much money and will need to raise more. We'd posit that the future looks challenging, given the disconnect between revenue growth and the share price.

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

If you are thinking of buying or selling SOS stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We doubt SOS shareholders are happy with the loss of 79% over twelve months. That falls short of the market, which lost 13%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's great to see a nice little 82% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand SOS better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for SOS (of which 1 is a bit unpleasant!) you should know about.

Of course SOS may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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