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Ampco-Pittsburgh Corporation (NYSE:AP) shareholders should be happy to see the share price up 21% in the last month. But will that repair the damage for the weary investors who have owned this stock as it declined over half a decade? Probably not. In fact, the share price has tumbled down a mountain to land 82% lower after that period. While the recent increase might be a green shoot, we're certainly hesitant to rejoice. The million dollar question is whether the company can justify a long term recovery.
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 Ampco-Pittsburgh
Ampco-Pittsburgh isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last half decade, Ampco-Pittsburgh saw its revenue increase by 12% per year. That's a fairly respectable growth rate. So it is unexpected to see the stock down 29% per year in the last five years. The truth is that the growth might be below expectations, and investors are probably worried about the continual losses.