2CRSI (EPA:2CRSI) shareholders are up 30% this past week, but still in the red over the last three years

2CRSI S.A. (EPA:2CRSI) has rebounded strongly over the last week, with the share price soaring 30%. But that doesn't change the fact that the returns over the last three years have been disappointing. Tragically, the share price declined 54% in that time. So the improvement may be a real relief to some. After all, could be that the fall was overdone.

The recent uptick of 30% could be a positive sign of things to come, so let's take a lot at historical fundamentals.

See our latest analysis for 2CRSI

Given that 2CRSI didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

In the last three years, 2CRSI saw its revenue grow by 44% per year, compound. That is faster than most pre-profit companies. The share price has moved in quite the opposite direction, down 16% over that time, a bad result. 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).

Take a more thorough look at 2CRSI's financial health with this free report on its balance sheet.

A Different Perspective

The last twelve months weren't great for 2CRSI shares, which cost holders 16%, while the market was up about 10%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, the longer term story isn't pretty, with investment losses running at 16% per year over three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with 2CRSI , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of growing 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 FR 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.