Superior Industries International (NYSE:SUP) dips 19% this week as increasing losses might not be inspiring confidence among its investors

If you love investing in stocks you're bound to buy some losers. Long term Superior Industries International, Inc. (NYSE:SUP) shareholders know that all too well, since the share price is down considerably over three years. Sadly for them, the share price is down 54% in that time. The more recent news is of little comfort, with the share price down 46% in a year. The falls have accelerated recently, with the share price down 34% in the last three months.

If the past week is anything to go by, investor sentiment for Superior Industries International isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for Superior Industries International

Superior Industries International wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last three years Superior Industries International saw its revenue shrink by 3.4% per year. That's not what investors generally want to see. The share price decline of 15% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Of course, it's the future that will determine whether today's price is a good one. We'd be pretty wary of this one until it makes a profit, because we don't specialize in finding turnaround situations.

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

Take a more thorough look at Superior Industries International's financial health with this free report on its balance sheet.

A Different Perspective

Investors in Superior Industries International had a tough year, with a total loss of 46%, against a market gain of about 24%. 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 7% 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 Superior Industries International better, we need to consider many other factors. Even so, be aware that Superior Industries International is showing 2 warning signs in our investment analysis , you should know about...

Of course Superior Industries International may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.