Shareholders in Grupa Azoty Zaklady Chemiczne Police (WSE:PCE) have lost 33%, as stock drops 10% this past week

While it may not be enough for some shareholders, we think it is good to see the Grupa Azoty Zaklady Chemiczne Police S.A. (WSE:PCE) share price up 17% in a single quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. In fact, the share price is down 33% in the last three years, falling well short of the market return.

After losing 10% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

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Grupa Azoty Zaklady Chemiczne Police 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. 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.

Over the last three years, Grupa Azoty Zaklady Chemiczne Police's revenue dropped 8.9% per year. That is not a good result. The annual decline of 10% 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.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

This free interactive report on Grupa Azoty Zaklady Chemiczne Police's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Investors in Grupa Azoty Zaklady Chemiczne Police had a tough year, with a total loss of 27%, against a market gain of about 2.2%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% 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 Grupa Azoty Zaklady Chemiczne Police better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Grupa Azoty Zaklady Chemiczne Police , and understanding them should be part of your investment process.

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