Vranken-Pommery Monopole Société Anonyme's(EPA:VRAP) Share Price Is Down 46% Over The Past Five Years.

Vranken-Pommery Monopole Société Anonyme (EPA:VRAP) shareholders should be happy to see the share price up 11% in the last month. But over the last half decade, the stock has not performed well. After all, the share price is down 46% in that time, significantly under-performing the market.

See our latest analysis for Vranken-Pommery Monopole Société Anonyme

While Vranken-Pommery Monopole Société Anonyme made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over half a decade Vranken-Pommery Monopole Société Anonyme reduced its trailing twelve month revenue by 1.9% for each year. That's not what investors generally want to see. The stock hasn't done well for shareholders in the last five years, falling 8%, annualized. But it doesn't surprise given the falling revenue. Without profits, its hard to see how shareholders win if the revenue keeps falling.

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

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

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Vranken-Pommery Monopole Société Anonyme's total shareholder return (TSR) and its share price return. 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. Its history of dividend payouts mean that Vranken-Pommery Monopole Société Anonyme's TSR, which was a 38% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

While the broader market lost about 1.0% in the twelve months, Vranken-Pommery Monopole Société Anonyme shareholders did even worse, losing 30%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 7% 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. It's always interesting to track share price performance over the longer term. But to understand Vranken-Pommery Monopole Société Anonyme better, we need to consider many other factors. Even so, be aware that Vranken-Pommery Monopole Société Anonyme is showing 3 warning signs in our investment analysis , and 1 of those is significant...

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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 FR exchanges.

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