Loss-making Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien (ETR:BVB) sheds a further €47m, taking total shareholder losses to 56% over 3 years

Investing in stocks inevitably means buying into some companies that perform poorly. Long term Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (ETR:BVB) shareholders know that all too well, since the share price is down considerably over three years. So they might be feeling emotional about the 57% share price collapse, in that time. And more recent buyers are having a tough time too, with a drop of 23% in the last year. Shareholders have had an even rougher run lately, with the share price down 18% in the last 90 days.

If the past week is anything to go by, investor sentiment for Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

View our latest analysis for Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien

Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last three years, Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien's revenue dropped 8.4% per year. That's not what investors generally want to see. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 16% per year. Of course, it's the future that will determine whether today's price is a good one. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien shareholders are down 21% for the year, but the market itself is up 8.4%. 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. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Borussia Dortmund GmbH Kommanditgesellschaft auf Aktien you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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