Over the last month the GreenBox POS (NASDAQ:GBOX) has been much stronger than before, rebounding by 49%. But that is meagre solace when you consider how the price has plummeted over the last year. Specifically, the stock price nose-dived 84% in that time. So it's not that amazing to see a bit of a bounce. Only time will tell if the company can sustain the turnaround. While a drop like that is definitely a body blow, money isn't as important as health and happiness.

On a more encouraging note the company has added US$6.2m to its market cap in just the last 7 days, so let's see if we can determine what's driven the one-year loss for shareholders.

Check out our latest analysis for GreenBox POS

GreenBox POS isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last twelve months, GreenBox POS increased its revenue by 102%. That's a strong result which is better than most other loss making companies. So the hefty 84% share price crash makes us think the company has somehow offended market participants. There's clearly something unusual going on here such as an acquisition that hasn't delivered expected profits. What is clear is that the market is not judging the company on its revenue growth right now. Of course, investors do over-react when they are stressed out, so the sell-off could be unjustifiably severe.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. If you are thinking of buying or selling GreenBox POS stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

GreenBox POS shareholders are down 84% for the year, falling short of the market return. The market shed around 8.3%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 4% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. 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 4 warning signs for GreenBox POS (2 shouldn't be ignored) that you should be aware of.