Yahoo Finance Investors in hVIVO (LON:HVO) have unfortunately lost 52% over the last year
Investing in stocks comes with the risk that the share price will fall. And unfortunately for hVIVO plc (LON:HVO) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 52% in that time. On the other hand, the stock is actually up 49% over three years. Furthermore, it's down 21% in about a quarter. That's not much fun for holders.
It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.
See our latest analysis for hVIVO
Because hVIVO made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
hVIVO's revenue didn't grow at all in the last year. In fact, it fell 10%. That looks pretty grim, at a glance. In the absence of profits, it's not unreasonable that the share price fell 52%. Having said that, if growth is coming in the future, the stock may have better days ahead. We don't generally like to own companies with falling revenues and no profits, so we're pretty cautious of this one, at the moment.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at hVIVO's financial health with this free report on its balance sheet.
A Different Perspective
hVIVO shareholders are down 52% for the year, falling short of the market return. Meanwhile, the broader market slid about 7.0%, likely weighing on the stock. Investors are up over three years, booking 19% per year, much better than the more recent returns. 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 2 warning signs for hVIVO that you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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