Duck Creek Technologies, Inc. (NASDAQ:DCT) shareholders have seen the share price descend 11% over the month. But at least the stock is up over the last year. But to be blunt its return of 11% fall short of what you could have got from an index fund (around 27%).
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
Given that Duck Creek Technologies 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.
In the last year Duck Creek Technologies saw its revenue grow by 23%. We respect that sort of growth, no doubt. The share price gain of 11% seems pretty muted, considering the growth. Its possible that shareholders had expected higher growth. But this one could be a worth watching - a maiden profit would likely catch the market's attention.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).NasdaqGS:DCT Earnings and Revenue Growth October 9th 2021
Duck Creek Technologies is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Duck Creek Technologies shareholders have gained 11% for the year. Unfortunately this falls short of the market return of around 27%. However, that falls short of the 11% gain it has made, for shareholders, in the last three months. The very recent increase in the share price could be evidence that the narrative is changing for the better due to fundamental improvements. 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. Even so, be aware that Duck Creek Technologies is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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