If You Had Bought Metrovacesa's (BME:MVC) Shares A Year Ago You Would Be Down 24%

Metrovacesa S.A. (BME:MVC) shareholders should be happy to see the share price up 11% in the last month. But that doesn't change the fact that the returns over the last year have been less than pleasing. In fact, the price has declined 24% in a year, falling short of the returns you could get by investing in an index fund.

See our latest analysis for Metrovacesa

Metrovacesa isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Metrovacesa's revenue didn't grow at all in the last year. In fact, it fell 20%. That looks pretty grim, at a glance. The stock price has languished lately, falling 24% in a year. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Metrovacesa shareholders are down 24% for the year, even worse than the market loss of 9.9%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Putting aside the last twelve months, it's good to see the share price has rebounded by 3.6%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). You could get a better understanding of Metrovacesa's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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