Hapvida Participações e Investimentos (BVMF:HAPV3 shareholders incur further losses as stock declines 5.5% this week, taking three-year losses to 73%

While it may not be enough for some shareholders, we think it is good to see the Hapvida Participações e Investimentos S.A. (BVMF:HAPV3) share price up 19% in a single quarter. But that doesn't change the fact that the returns over the last three years have been stomach churning. To wit, the share price sky-dived 73% in that time. So it's about time shareholders saw some gains. Only time will tell if the company can sustain the turnaround.

After losing 5.5% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Hapvida Participações e Investimentos

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

We know that Hapvida Participações e Investimentos has been profitable in the past. On the other hand, it reported a trailing twelve months loss, suggesting it isn't reliably profitable. Other metrics might give us a better handle on how its value is changing over time.

Revenue is actually up 42% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating Hapvida Participações e Investimentos further; while we may be missing something on this analysis, there might also be an opportunity.

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

If you are thinking of buying or selling Hapvida Participações e Investimentos stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Hapvida Participações e Investimentos shareholders gained a total return of 9.2% during the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 7% per year, over five years. It could well be that the business is stabilizing. You could get a better understanding of Hapvida Participações e Investimentos' growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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

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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.