Investors might be losing patience for eDreams ODIGEO's (BME:EDR) increasing losses, as stock sheds 4.9% over the past week

It hasn't been the best quarter for eDreams ODIGEO S.A. (BME:EDR) shareholders, since the share price has fallen 19% in that time. In contrast, the return over three years has been impressive. In three years the stock price has launched 157% higher: a great result. After a run like that some may not be surprised to see prices moderate. If the business can perform well for years to come, then the recent drop could be an opportunity.

Although eDreams ODIGEO has shed €49m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

See our latest analysis for eDreams ODIGEO

eDreams ODIGEO 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

eDreams ODIGEO actually saw its revenue drop by 39% per year over three years. So the share price gain of 37% per year is quite surprising. It's fair to say shareholders are definitely counting on a bright future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

It's nice to see that eDreams ODIGEO shareholders have received a total shareholder return of 59% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 20% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should be aware of the 2 warning signs we've spotted with eDreams ODIGEO .

We will like eDreams ODIGEO 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 ES exchanges.

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

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.