How Much Did Pivotal Systems'(ASX:PVS) Shareholders Earn From Share Price Movements Over The Last Year?

Pivotal Systems Corporation (ASX:PVS) shareholders should be happy to see the share price up 30% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. After all, the share price is down 23% in the last year, significantly under-performing the market.

See our latest analysis for Pivotal Systems

Pivotal Systems wasn't profitable in the last twelve months, 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Pivotal Systems saw its revenue grow by 44%. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 23%. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While Pivotal Systems shareholders are down 23% for the year, the market itself is up 27%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 30% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Pivotal Systems better, we need to consider many other factors. For instance, we've identified 2 warning signs for Pivotal Systems that you should be aware of.

Of course Pivotal Systems may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

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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. 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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