Aevis Victoria (VTX:AEVS investor one-year losses grow to 19% as the stock sheds CHF88m this past week

It's easy to match the overall market return by buying an index fund. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Investors in Aevis Victoria SA (VTX:AEVS) have tasted that bitter downside in the last year, as the share price dropped 20%. That falls noticeably short of the market return of around 7.1%. On the other hand, the stock is actually up 8.4% over three years. Unfortunately the share price momentum is still quite negative, with prices down 8.6% in thirty days.

If the past week is anything to go by, investor sentiment for Aevis Victoria isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Aevis Victoria

Aevis Victoria 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. When a company doesn't make profits, we'd generally hope to see good 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.

Aevis Victoria's revenue didn't grow at all in the last year. In fact, it fell 14%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 20% in that time. What would you expect when revenue is falling, and it doesn't make a profit? We think most holders must believe revenue growth will improve, or else costs will decline.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Aevis Victoria stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Investors in Aevis Victoria had a tough year, with a total loss of 19%, against a market gain of about 7.1%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 5%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Aevis Victoria has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com