Enaex (SNSE:ENAEX) Share Prices Have Dropped 19% In The Last Three Years

No-one enjoys it when they lose money on a stock. But when the market is down, you're bound to have some losers. While the Enaex S.A. (SNSE:ENAEX) share price is down 19% in the last three years, the total return to shareholders (which includes dividends) was -9.7%. And that total return actually beats the market decline of 12%. The good news is that the stock is up 1.4% in the last week.

View our latest analysis for Enaex

We don't think that Enaex's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over three years, Enaex grew revenue at 2.7% per year. Given it's losing money in pursuit of growth, we are not really impressed with that. Indeed, the stock dropped 6% over the last three years. Shareholders will probably be hoping growth picks up soon. But ultimately the key will be whether the company can become profitability.

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

Take a more thorough look at Enaex's financial health with this free report on its balance sheet.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Enaex the TSR over the last 3 years was -9.7%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

We're pleased to report that Enaex shareholders have received a total shareholder return of 3.6% over one year. That's including the dividend. Having said that, the five-year TSR of 6% a year, is even better. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand Enaex better, we need to consider many other factors. Even so, be aware that Enaex is showing 3 warning signs in our investment analysis , and 1 of those is concerning...

Of course Enaex 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 CL 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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