If You Had Bought Rompetrol Rafinare's (BVB:RRC) Shares Three Years Ago You Would Be Down 19%

Rompetrol Rafinare S.A. (BVB:RRC) shareholders should be happy to see the share price up 13% in the last quarter. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 19% in the last three years, significantly under-performing the market.

See our latest analysis for Rompetrol Rafinare

Because Rompetrol Rafinare made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last three years Rompetrol Rafinare saw its revenue shrink by 0.9% per year. That's not what investors generally want to see. The annual decline of 6% 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).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

While the broader market gained around 3.1% in the last year, Rompetrol Rafinare shareholders lost 6.3%. 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. Longer term investors wouldn't be so upset, since they would have made 1.0%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Rompetrol Rafinare better, we need to consider many other factors. For instance, we've identified 1 warning sign for Rompetrol Rafinare that you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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