Joyfull's (FKSE:9942) Stock Price Has Reduced 42% In The Past Three Years

For many investors, the main point of stock picking is to generate higher returns than the overall market. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. Unfortunately, that's been the case for longer term Joyfull Co., Ltd. (FKSE:9942) shareholders, since the share price is down 42% in the last three years, falling well short of the market return of around 21%. And over the last year the share price fell 32%, so we doubt many shareholders are delighted. The good news is that the stock is up 2.6% in the last week.

Check out our latest analysis for Joyfull

Given that Joyfull 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years, Joyfull's revenue dropped 0.4% per year. That's not what investors generally want to see. The annual decline of 12% per year in that period has clearly disappointed holders. That makes sense given the lack of either profits or revenue growth. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

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

A Different Perspective

Investors in Joyfull had a tough year, with a total loss of 32%, against a market gain of about 16%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 5% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Joyfull better, we need to consider many other factors. Even so, be aware that Joyfull is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

But note: Joyfull 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 JP 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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