How Much Did CPI Aerostructures'(NYSEMKT:CVU) Shareholders Earn From Share Price Movements Over The Last Five Years?

It is doubtless a positive to see that the CPI Aerostructures, Inc. (NYSEMKT:CVU) share price has gained some 78% in the last three months. But that doesn't change the fact that the returns over the last five years have been less than pleasing. You would have done a lot better buying an index fund, since the stock has dropped 41% in that half decade.

View our latest analysis for CPI Aerostructures

Given that CPI Aerostructures 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last five years CPI Aerostructures saw its revenue shrink by 3.3% per year. That's not what investors generally want to see. The share price decline at a rate of 7% per year is disappointing. But it doesn't surprise given the falling revenue. Without profits, its hard to see how shareholders win if the revenue keeps falling.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on CPI Aerostructures' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

CPI Aerostructures shareholders gained a total return of 20% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 7% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand CPI Aerostructures better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for CPI Aerostructures you should be aware of, and 1 of them can't be ignored.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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