Tilray Brands (NASDAQ:TLRY investor one-year losses grow to 65% as the stock sheds US$177m this past week

Even the best stock pickers will make plenty of bad investments. And there’s no doubt that Tilray Brands, Inc. (NASDAQ:TLRY) stock has had a really bad year. To wit the share price is down 65% at that time. Tilray Brands hasn’t been listed for long, so although we’re wary of recent listings that perform poorly, it may still prove itself with time. The last week also saw the share price slip down another 7.1%.

Given the past week has been tough on shareholders, let’s investigate the fundamentals and see what we can learn.

Check out the opportunities and risks within the US pharmaceuticals industry.

Given that Tilray Brands 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last twelve months, Tilray Brands increased its revenue by 8.9%. That’s not a very high growth rate considering it doesn’t make profits. It’s likely this muted growth has contributed to the share price decline of 65% in the last year. Like many holders, we really want to see better revenue growth in companies that lose money. When a stock falls hard like this, it can signal an over-reaction. Our preference is to wait for fundamental improvements before buying, but now could be a good time for some research.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

NasdaqGS:TLRY Earnings and Revenue Growth November 25th 2022

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

A Different Perspective

We doubt Tilray Brands shareholders are happy with the loss of 65% over twelve months. That falls short of the market, which lost 19%. That’s disappointing, but it’s worth keeping in mind that the market-wide selling wouldn’t have helped. With the stock down 1.3% over the last three months, the market doesn’t seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we’d remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present specter of investment risk. We’ve identified 2 warning signs with Tilray Brands, and understanding them should be part of your investment process.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

Valuation is complex, but we’re helping make it simple.

Find out whether Tilray Brands is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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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