Loss-making Wind Buzz Technologies (TLV:WNBZ) has seen earnings and shareholder returns follow the same downward trajectory over past -40% – Simply Wall St
Stock Analysis
Wind Buzz Technologies Ltd (TLV:WNBZ) shareholders should be happy to see the share price up 10% in the last week. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 83% in the last year, significantly under-performing the market. While a drop like that is definitely a body blow, money isn't as important as health and happiness.
The recent uptick of 10% could be a positive sign of things to come, so let's take a look at historical fundamentals.
Check out our latest analysis for Wind Buzz Technologies
With just ₪3,416,000 worth of revenue in twelve months, we don't think the market considers Wind Buzz Technologies to have proven its business plan. You have to wonder why venture capitalists aren't funding it. So it seems shareholders are too busy dreaming about the progress to come than dwelling on the current (lack of) revenue. Investors will be hoping that Wind Buzz Technologies can make progress and gain better traction for the business, before it runs low on cash.
Companies that lack both meaningful revenue and profits are usually considered high risk. There is usually a significant chance that they will need more money for business development, putting them at the mercy of capital markets to raise equity. So the share price itself impacts the value of the shares (as it determines the cost of capital). While some such companies do very well over the long term, others become hyped up by promoters before eventually falling back down to earth, and going bankrupt (or being recapitalized). It certainly is a dangerous place to invest, as Wind Buzz Technologies investors might realise.
Our data indicates that Wind Buzz Technologies had ₪52m more in total liabilities than it had cash, when it last reported in June 2022. That puts it in the highest risk category, according to our analysis. But since the share price has dived 83% in the last year , it looks like some investors think it's time to abandon ship, so to speak. You can see in the image below, how Wind Buzz Technologies' cash levels have changed over time (click to see the values).
It can be extremely risky to invest in a company that doesn't even have revenue. There's no way to know its value easily. Given that situation, would you be concerned if it turned out insiders were relentlessly selling stock? It would bother me, that's for sure. It only takes a moment for you to check whether we have identified any insider sales recently.
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Wind Buzz Technologies, it has a TSR of -40% for the last 1 year. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
While the broader market lost about 18% in the twelve months, Wind Buzz Technologies shareholders did even worse, losing 40% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 6% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. For instance, we've identified 5 warning signs for Wind Buzz Technologies that you should be aware of.
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 IL exchanges.
Find out whether Wind Buzz Technologies 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.
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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.
Wind Buzz Technologies Ltd initiates, develops, constructs, leases, manages, and maintains commercial investment properties in Israel.
The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.
Read more about these checks in the individual report sections or in our analysis model.
Slightly overvalued unattractive dividend payer.
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