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May 10

Those Who Purchased Cooks Global Foods (NZSE:CGF) Shares Five Years Ago Have A 62% Loss To Show For It – Yahoo Finance

Cooks Global Foods Limited (NZSE:CGF) shareholders should be happy to see the share price up 18% in the last month. But that is little comfort to those holding over the last half decade, sitting on a big loss. In that time the share price has delivered a rude shock to holders, who find themselves down 62% after a long stretch. So we're hesitant to put much weight behind the short term increase. We'd err towards caution given the long term under-performance.

See our latest analysis for Cooks Global Foods

Given that Cooks Global Foods 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.

Over half a decade Cooks Global Foods reduced its trailing twelve month revenue by 8.6% for each year. That's definitely a weaker result than most pre-profit companies report. It seems appropriate, then, that the share price slid about 18% annually during that time. We don't generally like to own companies that lose money and don't grow revenues. You might be better off spending your money on a leisure activity. This looks like a really risky stock to buy, at a glance.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

NZSE:CGF Income Statement May 9th 2020

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Cooks Global Foods's earnings, revenue and cash flow.

It's good to see that Cooks Global Foods has rewarded shareholders with a total shareholder return of 29% in the last twelve months. Notably the five-year annualised TSR loss of 18% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Cooks Global Foods has 5 warning signs (and 1 which is a bit concerning) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

See more here:
Those Who Purchased Cooks Global Foods (NZSE:CGF) Shares Five Years Ago Have A 62% Loss To Show For It - Yahoo Finance

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