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Some Ekso Bionics Holdings (NASDAQ:EKSO) Shareholders Have Copped A 96% Share Price Wipe Out

Long term investing is the way to go, but that doesn't mean you should hold every stock forever. It hits us in the gut when we see fellow investors suffer a loss. Spare a thought for those who held Ekso Bionics Holdings, Inc. (NASDAQ:EKSO) for five whole years - as the share price tanked 96%. And some of the more recent buyers are probably worried, too, with the stock falling 81% in the last year. Shareholders have had an even rougher run lately, with the share price down 38% in the last 90 days.

We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

Check out our latest analysis for Ekso Bionics Holdings

Given that Ekso Bionics Holdings 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over five years, Ekso Bionics Holdings grew its revenue at 9.9% per year. That's a fairly respectable growth rate. So it is unexpected to see the stock down 47% per year in the last five years. The market can be a harsh master when your company is losing money and revenue growth disappoints.

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

NasdaqCM:EKSO Income Statement, February 10th 2020
NasdaqCM:EKSO Income Statement, February 10th 2020

This free interactive report on Ekso Bionics Holdings's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Investors in Ekso Bionics Holdings had a tough year, with a total loss of 81%, against a market gain of about 23%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 47% per year over five years. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Ekso Bionics Holdings better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Ekso Bionics Holdings (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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.