If You Had Bought Marie Brizard Wine & Spirits (EPA:MBWS) Stock A Year Ago, You Could Pocket A 103% Gain Today

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Marie Brizard Wine & Spirits SA (EPA:MBWS) share price had more than doubled in just one year - up 103%. Then again, the 8.0% share price decline hasn't been so fun for shareholders. In contrast, the longer term returns are negative, since the share price is 85% lower than it was three years ago.

See our latest analysis for Marie Brizard Wine & Spirits

Because Marie Brizard Wine & Spirits made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Marie Brizard Wine & Spirits actually shrunk its revenue over the last year, with a reduction of 28%. We're a little surprised to see the share price pop 103% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

If you are thinking of buying or selling Marie Brizard Wine & Spirits stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Marie Brizard Wine & Spirits' total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. We note that Marie Brizard Wine & Spirits' TSR, at 112% is higher than its share price return of 103%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

It's nice to see that Marie Brizard Wine & Spirits shareholders have received a total shareholder return of 112% over the last year. There's no doubt those recent returns are much better than the TSR loss of 14% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the 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. For instance, we've identified 2 warning signs for Marie Brizard Wine & Spirits (1 doesn't sit too well with us) that you should be aware of.

We will like Marie Brizard Wine & Spirits 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 FR 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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