How Much Did Finepart Sweden's(NGM:FINE) Shareholders Earn From Share Price Movements Over The Last Year?

It's easy to match the overall market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. That downside risk was realized by Finepart Sweden AB (NGM:FINE) shareholders over the last year, as the share price declined 60%. That falls noticeably short of the market return of around 20%. We note that it has not been easy for shareholders over three years, either; the share price is down 53% in that time. Furthermore, it's down 21% in about a quarter. That's not much fun for holders.

Check out our latest analysis for Finepart Sweden

Because Finepart Sweden 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Finepart Sweden grew its revenue by 220% over the last year. That's a strong result which is better than most other loss making companies. In contrast the share price is down 60% over twelve months. Yes, the market can be a fickle mistress. This could mean hype has come out of the stock because the bottom line is concerning investors. Generally speaking investors would consider a stock like this less risky once it turns a profit. But when do you think that will happen?

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

If you are thinking of buying or selling Finepart Sweden stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Finepart Sweden's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. We note that Finepart Sweden's TSR, at -45% is higher than its share price return of -60%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

The last twelve months weren't great for Finepart Sweden shares, which cost holders 45%, while the market was up about 20%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Shareholders have lost 10% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. It's always interesting to track share price performance over the longer term. But to understand Finepart Sweden better, we need to consider many other factors. Take risks, for example - Finepart Sweden has 6 warning signs (and 3 which make us uncomfortable) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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