Marisa Lojas'(BVMF:AMAR3) Share Price Is Down 53% Over The Past Year.

Investing in stocks comes with the risk that the share price will fall. And unfortunately for Marisa Lojas S.A. (BVMF:AMAR3) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 53% in that time. However, the longer term returns haven't been so bad, with the stock down 19% in the last three years. Even worse, it's down 8.1% in about a month, which isn't fun at all.

Check out our latest analysis for Marisa Lojas

Marisa Lojas 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Marisa Lojas' revenue didn't grow at all in the last year. In fact, it fell 19%. That's not what investors generally want to see. The share price drop of 53% is understandable given the company doesn't have profits to boast of. 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).

This free interactive report on Marisa Lojas' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While the broader market gained around 1.8% in the last year, Marisa Lojas shareholders lost 53%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 7%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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 BR 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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