Further weakness as Doral Group Renewable Energy Resources (TLV:DORL) drops 12% this week, taking one-year losses to 49%

The simplest way to benefit from a rising market is to buy an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. For example, the Doral Group Renewable Energy Resources Ltd (TLV:DORL) share price is down 49% in the last year. That falls noticeably short of the market decline of around 23%. Because Doral Group Renewable Energy Resources hasn't been listed for many years, the market is still learning about how the business performs. Furthermore, it's down 35% in about a quarter. That's not much fun for holders.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

View our latest analysis for Doral Group Renewable Energy Resources

While Doral Group Renewable Energy Resources 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.

In just one year Doral Group Renewable Energy Resources saw its revenue fall by 34%. That's not what investors generally want to see. Shareholders have seen the share price drop 49% in that time. What would you expect when revenue is falling, and it doesn't make a profit? It's hard to escape the conclusion that buyers must envision either growth down the track, cost cutting, or both.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Doral Group Renewable Energy Resources' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

We doubt Doral Group Renewable Energy Resources shareholders are happy with the loss of 49% over twelve months. That falls short of the market, which lost 23%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. With the stock down 35% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. It's always interesting to track share price performance over the longer term. But to understand Doral Group Renewable Energy Resources better, we need to consider many other factors. For example, we've discovered 3 warning signs for Doral Group Renewable Energy Resources (2 are a bit concerning!) that you should be aware of before investing here.

But note: Doral Group Renewable Energy Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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