Even though Orizon Valorização de Resíduos (BVMF:ORVR3) has lost R$216m market cap in last 7 days, shareholders are still up 19% over 1 year

By
Simply Wall St
Published
March 17, 2022
BOVESPA:ORVR3
Source: Shutterstock

Orizon Valorização de Resíduos S.A. (BVMF:ORVR3) shareholders might be concerned after seeing the share price drop 13% in the last month. But that doesn't change the reality that over twelve months the stock has done really well. To wit, it had solidly beat the market, up 19%.

While the stock has fallen 11% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

Check out our latest analysis for Orizon Valorização de Resíduos

Orizon Valorização de Resíduos isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Orizon Valorização de Resíduos saw its revenue shrink by 0.09%. Despite the lack of revenue growth, the stock has returned a solid 19% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
BOVESPA:ORVR3 Earnings and Revenue Growth March 17th 2022

Take a more thorough look at Orizon Valorização de Resíduos' financial health with this free report on its balance sheet.

A Different Perspective

Orizon Valorização de Resíduos shareholders should be happy with the total gain of 19% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 9.1% in that time. This suggests the company is continuing to win over new investors. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.