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Easy Come, Easy Go: How FTS International (NYSE:FTSI) Shareholders Got Unlucky And Saw 92% Of Their Cash Evaporate - Yahoo Finance

As every investor would know, you don't hit a homerun every time you swing. But it's not unreasonable to try to avoid truly shocking capital losses. It must have been painful to be a FTS International, Inc. (NYSE:FTSI) shareholder over the last year, since the stock price plummeted 92% in that time. A loss like this is a stark reminder that portfolio diversification is important. FTS International may have better days ahead, of course; we've only looked at a one year period. Furthermore, it's down 50% in about a quarter. That's not much fun for holders.

We really hope anyone holding through that price crash has a diversified portfolio. Even when you lose money, you don't have to lose the lesson.

View our latest analysis for FTS International

Because FTS International made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

FTS International's revenue didn't grow at all in the last year. In fact, it fell 50%. That's not what investors generally want to see. The market obviously agrees, since the share price tanked 92%. That's a stern reminder that profitless companies need to grow the top line, at the very least. Of course, extreme share price falls can be an opportunity for those who are willing to really dig deeper to understand a high risk company like this.

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

NYSE:FTSI Income Statement, February 7th 2020

FTS International is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think FTS International will earn in the future (free analyst consensus estimates)

A Different Perspective

While FTS International shareholders are down 92% for the year, the market itself is up 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 50% 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 risks, for instance. Every company has them, and we've spotted 4 warning signs for FTS International you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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February 07, 2020 at 09:14PM
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Easy Come, Easy Go: How FTS International (NYSE:FTSI) Shareholders Got Unlucky And Saw 92% Of Their Cash Evaporate - Yahoo Finance
"easy" - Google News
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