Would Shareholders Who Purchased HanseYachts' (ETR:H9Y) Stock Three Years Be Happy With The Share price Today?

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. Long term HanseYachts AG (ETR:H9Y) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 60% drop in the share price over that period. And the ride hasn't got any smoother in recent times over the last year, with the price 28% lower in that time.

View our latest analysis for HanseYachts

Given that HanseYachts didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years, HanseYachts saw its revenue grow by 2.7% per year, compound. That's not a very high growth rate considering it doesn't make profits. It's likely this weak growth has contributed to an annualised return of 17% for the last three years. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). After all, growing a business isn't easy, and the process will not always be smooth.

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

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

A Different Perspective

HanseYachts shareholders are down 27% for the year, but the broader market is up 4.8%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. The three-year loss of 17% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand HanseYachts better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with HanseYachts .

We will like HanseYachts better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

If you’re looking to trade HanseYachts, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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