Stock Analysis

Atrys Health (BME:ATRY) adds €28m to market cap in the past 7 days, though investors from three years ago are still down 66%

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BME:ATRY

This week we saw the Atrys Health, S.A. (BME:ATRY) share price climb by 12%. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 66% in the last three years. So it's good to see it climbing back up. After all, could be that the fall was overdone.

The recent uptick of 12% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Atrys Health

Atrys Health isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last three years, Atrys Health saw its revenue grow by 26% per year, compound. That's well above most other pre-profit companies. In contrast, the share price is down 18% compound, over three years - disappointing by most standards. This could mean hype has come out of the stock because the losses are concerning investors. When we see revenue growth, paired with a falling share price, we can't help wonder if there is an opportunity for those who are willing to dig deeper.

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

BME:ATRY Earnings and Revenue Growth October 1st 2024

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

A Different Perspective

While the broader market gained around 30% in the last year, Atrys Health shareholders lost 15%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 1.2% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Atrys Health better, we need to consider many other factors. Even so, be aware that Atrys Health is showing 2 warning signs in our investment analysis , you should know about...

But note: Atrys Health may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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