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What Type Of Returns Would Mulberry Group's(LON:MUL) Shareholders Have Earned If They Purchased Their SharesThree Years Ago?
Every investor on earth makes bad calls sometimes. But really big losses can really drag down an overall portfolio. So take a moment to sympathize with the long term shareholders of Mulberry Group plc (LON:MUL), who have seen the share price tank a massive 74% over a three year period. That would certainly shake our confidence in the decision to own the stock. It's down 3.2% in the last seven days.
View our latest analysis for Mulberry Group
Mulberry Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong 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.
In the last three years Mulberry Group saw its revenue shrink by 6.6% per year. That is not a good result. The share price fall of 20% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue. We're generally averse to companies with declining revenues, but we're not alone in that. Don't let a share price decline ruin your calm. You make better decisions when you're calm.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
If you are thinking of buying or selling Mulberry Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While the broader market lost about 3.7% in the twelve months, Mulberry Group shareholders did even worse, losing 17%. 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. However, the loss over the last year isn't as bad as the 12% per annum loss investors have suffered over the last half decade. We would want clear information suggesting the company will grow, before taking the view that the share price will stabilize. It's always interesting to track share price performance over the longer term. But to understand Mulberry Group better, we need to consider many other factors. For instance, we've identified 2 warning signs for Mulberry Group (1 is a bit unpleasant) that you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB 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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About AIM:MUL
Mulberry Group
Designs and manufactures fashion accessories and clothing in the United Kingdom, Asia Pacific, and internationally.
Low and slightly overvalued.
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