Even after rising 11% this past week, SRP Groupe (EPA:SRP) shareholders are still down 59% over the past three years

SRP Groupe S.A. (EPA:SRP) shareholders should be happy to see the share price up 11% in the last week. But that is small recompense for the exasperating returns over three years. Tragically, the share price declined 59% in that time. So it's good to see it climbing back up. Perhaps the company has turned over a new leaf.

On a more encouraging note the company has added €7.4m to its market cap in just the last 7 days, so let's see if we can determine what's driven the three-year loss for shareholders.

We've discovered 2 warning signs about SRP Groupe. View them for free.

SRP Groupe 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 SRP Groupe saw its revenue shrink by 1.3% per year. That is not a good result. The share price decline of 17% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Of course, it's the future that will determine whether today's price is a good one. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

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 SRP Groupe stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market lost about 4.1% in the twelve months, SRP Groupe shareholders did even worse, losing 37%. 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. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand SRP Groupe better, we need to consider many other factors. Take risks, for example - SRP Groupe has 2 warning signs we think you should be aware of.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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